FTB-C000141 / Formula component

Index Market Value

Index market value is the methodology-defined aggregate value of eligible constituent contributions used in an index calculation.

Also known asindex numeratoraggregate index market value

Intermediate Formula defined 7 linked topicsPublished

Definitions

In plain terms

In a free-float capitalization index, it commonly sums price times eligible shares and investability factors across constituents.

Technical

The numerator requires constituents, prices, shares, float and capping factors, FX, timing, corporate-action state, missing-input policy, and methodology version.

Scope

It is a calculation aggregate and not necessarily the market value of every issued share.

Formula

MV = sum(P_i * Q_i * F_i)
LaTeX: MV=\sum_i P_iQ_iF_i
SymbolMeaningUnit
P_ieligible price for constituent icurrency per share
Q_ieligible constituent sharesshares
F_icombined investability or adjustment factorratio

Output unit: index numerator currency

Examples

  • A governed index record identifies index market value with its applicable methodology version, effective time, source, and units.

Common misconceptions

  • Index Market Value does not have one universal implementation without the named index methodology, data cutoff, and governance context.

Concept relationships

Prerequisites

Related

Required by

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

  • D03-F01-A01 Important
  • D03-F01-A02 Important
  • D03-F01-A03 Important
  • D03-F01-A04 Important
  • D03-F01-A05 Important
  • D03-F02-A02 Important
  • D03-F02-A03 Important

Evidence and governance

  1. S&P Dow Jones Indices Index Mathematics Methodology S&P Dow Jones Indices · first party methodology

    Supports: preferred label, short definition, technical definition, formula

    Limits: Authoritative for the provider's indices; conventions are not universal defaults for every index or security-level return series.

  2. 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
Last reviewed
2026-07-27
Next review
2027-07-27
Record status
published
Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.