gumshoe , another thought ...
And it is your pointing out that in effect 'penalizing' a company for having strong insider ownership could be deemed "unjust" that has me digging to determine the real deal.
(I just read your latest post while I'm still writing this one and I think that 10%+ number is very clear when it says they lump the O&D's ownership together , and I don't think any of those other 'adjustable' items apply to TIV.)
My bolding and underlining in the Russell statement below may put the emphasis in the correct spots ... rendering the 'free float adjust' item a non-event with respect to TIV's inclusion/exclusion from the R2K.
"After membership is determined, a security's shares are adjusted to include only those shares available to the public. This is often referred to as free float. The purpose of this adjustment is to exclude from market calculations the capitalization that is not available for purchase and is not part of the investable opportunity set.
Stocks are weighted in the Russell U.S. indexes by their available (also called float-adjusted) market capitalization, which is calculated by multiplying the primary closing price by the available shares."
gumshoe , it could well be that this 'free float adjustment' is done after the 3000 companies are selected and put in the appropriate Index , and that it is used solely as a weighting mechanism by those needing to weight these stocks for whatever reasons , such as Index Funds which have to figure out how many shares of these companies to buy.
jonesie
Yorkville / Cornell Tracking Board #board-9964
"I can think of no more valuable commodity than information"
