Capped Indices

An important concept in finance is market capitalization, which refers to the total value of a company's outstanding shares. In the world of indices, there are certain criteria that are used to determine the weight of each constituent. One such criteria is the maximum relative weight, which sets a limit on the percentage that any one constituent can hold in the index. For example, the S&P/TSX Capped Composite and Capped 60 indices have a maximum relative weight of 10% for each constituent, while the sector indices have a maximum of 25%. This ensures a balanced representation of companies within the index.

Understand the meaning and definition of Diluted Earnings (a.k.a. fully diluted earnings) in the context of stock market, trading, and investments.

Bid Size

Understand the meaning and definition of Bid Size in the context of stock market, trading, and investments.

Fed

Understand the meaning and definition of Fed in the context of stock market, trading, and investments.

Preferred Shares

Understand the meaning and definition of Preferred Shares in the context of stock market, trading, and investments.

Seat

Understand the meaning and definition of Seat in the context of stock market, trading, and investments.

Contrarian

Understand the meaning and definition of Contrarian in the context of stock market, trading, and investments.

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