All books

Professional

Apps About Coach Log in Start reading

Quantitative Finance · Glossary

What is Float adjustment?

Definition 15.2 Markets I: The Ecosystem and Exchange-Traded Markets · Chapter 15 — Index Construction and Rebalancing

Float adjustment weights each member by its capitalisation multiplied by a float factor, the fraction of its shares in the free float (Definition 8.2), so that the index can be held by everyone at once.

Read in context →