Definitions
In plain terms
High concentration means a relatively small number of constituents account for a large portion of the chosen share basis.
Technical
The assessment fixes index version, timestamp, constituent set, share basis, normalization, caps, and metric.
Scope
It is not identical to contribution concentration over a return period.
Examples
- A Fintech Builder lesson can compute or identify Constituent Concentration only after declaring its inputs, timing, and edge-case rules.
Common misconceptions
- It is not identical to contribution concentration over a return period.
Concept relationships
Prerequisites
Broader concepts
Where this concept is used
Evidence and governance
- Herfindahl-Hirschman Index U.S. Department of Justice · official standard
Supports: preferred label, short definition, technical definition
Limits: Antitrust concentration thresholds do not automatically apply to index-constituent concentration; this glossary reuses only the mathematics.
- Reviewed by
- fintech-builder-batch-005
- Last reviewed
- 2026-07-27
- Next review
- 2027-07-27
- Record status
- evidence reviewed
This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.