Definitions
In plain terms
The factor reduces full market capitalization when strategic, controlling, government, or otherwise restricted holdings are excluded by the methodology.
Technical
The factor requires provider rules, holder classifications, foreign ownership limits, bands and rounding, security scope, effective date, source, and review history.
Scope
It is not a universal observable fact and different index providers may assign different factors.
Examples
- A governed index record identifies free-float factor with its applicable methodology version, effective time, source, and units.
Common misconceptions
- Free-Float Factor does not have one universal implementation without the named index methodology, data cutoff, and governance context.
Concept relationships
Prerequisites
Required by
Where this concept is used
- ImportantIndex Divisor InitializationD03-F01-A02
- ImportantIntraday Index-Level CalculationD03-F01-A05
- PrimaryFree-Float Market-Cap IndexD03-F02-A03
- ImportantCapped Free-Float Market-Cap IndexD03-F02-A04
- ImportantModified Market-Cap IndexD03-F02-A05
- ImportantIterative Cap RedistributionD03-F02-A07
- ImportantGroup-Level CappingD03-F02-A08
- PrimaryFree-Float Factor CalculationD03-F06-A03
- ImportantRebalancing AlgorithmD03-F06-A06
Evidence and governance
- MSCI Global Investable Market Indexes Methodology Library MSCI · first party methodology
Supports: preferred label, short definition, technical definition
Limits: MSCI methodology and production data are provider-specific and branded data or calculated values may require licenses.
- Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract
Supports: variant distinction
Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.
- Reviewed by
- fintech-builder-owner-approved
- Last reviewed
- 2026-07-27
- Next review
- 2027-07-27
- Record status
- published