BONY Moves ADR Index to Free Float Shares

December 12, 2001 ( - The Bank of New York ADR Index will convert to free-float adjusted shares from full-market capitalization, effective December 24, the bank announced Wednesday.

Free float market capitalization reflects the number of shares actually available to the investment community. The bank will utilize Dow Jones Indexes’ methodology for free float.

Share adjustments are made to account for shares which make up 5% or more of the share capital of a company and which are unlikely to become publicly available.

This includes shares owned by a government, privately held shares, restricted shares, and non-U.S. shares which are unavailable because of home country limitations on foreign ownership.

For foreign ownership restrictions of 5% or more, the lesser of the number of free-float shares or shares available for foreign investment are used.
Also effective December 24, Greece will move from an emerging markets index to a developed markets index, the bank said. Currently, four companies comprise The Bank of New York Greece ADR Index.

The Bank of New York ADR Index tracks all exchange-listed depositary receipts on a continuous basis.

The index is capitalization-weighted with a total value of more than $4 trillion. There are over 500 companies spread out over three regional indices, three market indices, three sector indices, 24 country indices and 18 country indicators.