What is the Russell 3000® index?
The Russell 3000® Index is a stock price index of 3,000 publicly traded US companies. This covers approximately 98% of the total number in the United States. The combination of scale and credibility of the index means that it is used as a reference point of analytics and companies that offer financial products such as mutual funds. The Russell 3000® index is a subset of the Russell 3000E® index, the widest index operating the company. This actually includes 4,000 companies; E is a shortcut for extended and the index consists of 3,000 shares in Russell 3000® plus 1,000 smaller shares. These include those trading below $ 1 in dollars (USD), some of those who trade above the counter - which means that they do not confuse themselves on stock exchanges and Mpomlčka; and foreign stocks. Of all the reserves covered in Russell 3000E®, the largest 3,000 is selected for the Russell 3000® index. It is based on market capitalization, which is the price of shares multiplied by the number of tradable shares. In fact, it's a hoda note that marketplaces in society as a whole.
The list of stocks included in various Russell indexes is calculated once a year. It is based on market capitalization annually on May 31, with the new list announced in mid -June and entered into force on the last Friday of June. If the company merges or its shares is discarded, it is not automatically removed from Russell 3000®. Such shares will usually be the first candidates to remove when newly floated companies are added, which occurs once a quarter.
There are two main ways to use the Russell 3000® index. The first is like a link of point. It can be easily used to monitor how well the stock markets worked as a whole or to monitor the relative performance of specific industries. Can also be used as a scale to assess the power of the fund administrator; Someone who cannot overcome the index character,It is unlikely to win many business!
Another main use of the Russell 3000® index is designed for mutual funds and funds traded. They are designed to buy and sell shares in relations corresponding to the constitution of the index. This in turn should mean that funds correspond to the market performance as a whole.