That's an excellent point gumshoe.
And while Russell doesn't seem to provide any detail on their 'adjustment' mechanism on their website , I had the feeling that 'adjustment' could possibly mean something other than straight out 'subtraction'.
If you find out anything about Russell's exact mechanism please let us know. For all I know it's on their website and I missed it.
Aside from that eventuality I can only deal with the available facts and best interpretations of them.
Googling finds a few items (I don't have time for an exhaustive search at the moment) such as:
"and will be weighted based on free-float adjustment, an integral aspect of Russell index methodology that is of particular importance in the small-cap and microcap segments. Free-float adjustment means stocks are weighted by their available market capitalization which is calculated by multiplying the primary closing price by the available shares. Russell uses a transparent, objective process in the development of its indexes and all Russell indexes have been free-float adjusted since inception."
jonesie
p.s. I remember getting a prompt reply from someone at Russell either last year or the year before , when asking them what time of day they were going to publish their final lists. And I was asking them on publication day at a time they must have been fairly busy. I suppose I could send a quick email to them outlining the 'particulars' of TIV's outstanding vs O&D holdings and inquire as to whether it's a straight subtraction or is a more equitable adjustment such as the one you outline. It would also afford an opportunity to ask about which number they might start with , the 5.6 mil in the 10-K which represents all voting rights of O&D's including options they have the rights to , or simply direct ownership of shares which is closer to that 3.1 mil number. If you beat me to emailing them , let me know.
Yorkville / Cornell Tracking Board #board-9964
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