DEM - Index Calculation Formula
Methodology for the determination of DEMEX
- The price index of DEM will be called DEMEX.
- Ordinary shares of 41 companies currently quoted on the OTC Market will initially form part of the index.
- The initial market capitalization of DEMEX will be calculated at the close of the trading session on August 4,2006 and will be determined as follows:
where i is the ordinary share of the ith company
pi = closing price of the ith company on the DEM on August 4.
ni = number of ordinary shares issued by the ith company.
Only companies which would trade on August 4 will be included in the initial market capitalization.
4. The base market capitalization of DEMEX will be set at the initial market capitalization of DEMEX at market close on August 4.
5. DEMEX will be set at 100 at market close on August 4 and will afterwards be calculated as follows:
DEMEX = Current Market Capitalisation of all Listed ordinary shares x 100
Base Market Capitalisation of all Listed ordinary shares
6. The base market capitalization will be adjusted at market close, each time a new company from the initial universe of 41 companies is traded for the first time.
New Listing
- In the case of the listing of the ordinary shares of a new company on the DEM after the launch, the base market capitalisation of DEMEX will be adjusted to reflect the initial market capitalization of the new listing on the day the newly admitted security is traded. The closing value of DEMEX, however, will remain unchanged following this adjustment
Corporate Actions
The base market capitalisation of DEMEX will be adjusted to reflect rights issues and other capital restructurings.
|
