Index Market Value (index numerator): Definition and Formula

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

Symbol	Meaning	Unit
`P_i`	eligible price for constituent i	currency per share
`Q_i`	eligible constituent shares	shares
`F_i`	combined investability or adjustment factor	ratio

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

Required by

Where this concept is used

Evidence and governance

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.
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

Index Market Value