A journey through American and Japanese capital Market.
This presentation can be used a study material for international Financial Management for MBA/PGDM.
It is very helpful for the students to describe the background and corporate use of the following international financial markets:
Foreign exchange market,
Eurocurrency market,
Euro credit market,
Eurobond market, and
International stock markets.
presentation slides on international funds flow prepared by the group members in a new way thanks guys for providing such a beneficial, knowledgeable slides.
ibo-06_international business finance Unit 02_international financial marketsJ. Sen
This presentation is based on IGNOU IBO-06 international business finance_unit_02. It will help the M.Com. student to understand the concepts of international financial markets in an easy way.
It is very helpful for the students to describe the background and corporate use of the following international financial markets:
Foreign exchange market,
Eurocurrency market,
Euro credit market,
Eurobond market, and
International stock markets.
presentation slides on international funds flow prepared by the group members in a new way thanks guys for providing such a beneficial, knowledgeable slides.
ibo-06_international business finance Unit 02_international financial marketsJ. Sen
This presentation is based on IGNOU IBO-06 international business finance_unit_02. It will help the M.Com. student to understand the concepts of international financial markets in an easy way.
" Managing working capital, financing the business, assessing
control of foreign Exchange and political risks and evaluating foreign
direct Investment."
Emerging economies and financial markets110914aKannan R
The potential growth of Emerging Markets are quite and going forward there will be a long term trend of continuous flow of funds from AMs to EMs. The strategies for sustaining this momentum are covered.
Emerging Economies are going to be the growth engines of the economy and by formulating robust strategies they can continue to achieve good foreign fund inflows going forward in future.The strategies discussed could go a long way .
Sovereign Development Funds - IFSWF - Kalytix Partners - 2014Peter Bruce-Clark
We had the pleasure of attending the annual International Forum of Sovereign Wealth Funds (IFSWF) last month, and providing our research and findings on the rise of sovereign development funds.
Global Financial Crisis and Singapore Vikas Sharma
Starting with the genesis and global impact of the Global Financial Crisis (GFC), this paper details drills down into its impact on Singapore's economy, and the measures that were taken by the island-state to limit the damage caused.
Comparison beween Multinational Financial Management and Domestic Financial Management?
Discuss evolution and International Financial Management System?
Write Special features of foreign exchange?
Describe the country risk Analysis in International Business?
Short notes on:
(i) Franchise system
(ii) Short term assets and liabilities
(iii) Foreign direct investment
Selecting Investments in a Global Market ch03.pptxFamiFamz1
Questions to be answered:
What distinguishes a derivative security such as a forward, futures, or option contract, from more fundamental securities, such as stocks and bonds?
What are the important characteristics of forward, futures, and option contracts, and in what sense can the be interpreted as insurance policies?
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
2. AGENDA
• TRENDS IN GLOBAL CAPITAL MARKET
• US CAPITAL MARKET STRUCTURE
• INDEXES USED IN US STOCK MARKET
• JAPANESE CAPITAL MARKET STRUCTURE
• INDEXES USED IN JAPANESE STOCK MARKET
• COMPARISON b/w US & JAPANESE CAPITAL MARKET
4. Raise in the level of foreign investment, Continued growth of global financial assets and
Regulation of International Securities Market in Asia have collectively had an impact on capital
markets and cross border trade.
• Raising capital becomes a real challenge for corporate around the world due to uncertainty in the global economy.
• Struggling credit markets, slumping stocks, and a sliding dollar have been generating anxiety among policy makers and since 2008.
• The global market had many fluctuations such as the 1987 U.S. stock market crash, the fall of British pound in 1992 and the
unravelling of Asia’s financial markets.
• A recent research by Mckinsey Global Institute (MGI) research has highlighted several trends that look set to continue during the
years ahead.
• The continued growth and deepening of global markets as investors pour money into equities, securities, bank deposits and other
assets around the world on one hand and the growth of financial markets, especially in emerging economies and the growing ties
between financial markets in developing and developed countries.
• Also, the shift of financial weight in Asia from Japan to other developing economies across Asia will have an impact on capital
markets of these countries.
5. Continued growth of global financial assets
• The volume of global financial assets such as government debt securities, corporate debt securities and equity
securities will continue to expand.
• In the last 25 years the financial assets have grown robustly. However bank deposits have reduced drastically.
• The past few years have seen the bank deposits see a jump of over $ 5.6 million, with significant contributions
from United States.
6. Depth of financial markets
• Financial markets have been growing faster than the global GDP over the years.
• Due to this the ratio of a country’s financial assets to GDP has been rising constantly over the past few years.
• In 1990, only 33 countries had financial assets whose value exceeded the value of their GDP’s. By 2006, this
figure had more than doubled to 72 countries
• Brazil, China, India are some of the few countries whose financial assets have outnumbered the country’s Gross
National Product (GNP).
Raise in the level of foreign investment
• The raise in the level of investment is making the world more financially interdependent than it was a few years
ago.
• By the end of 2006, it was around $ 74.5 trillion of assets.
7. Regulation of International Securities Market
• The world’s capital markets have continued to undergo dynamic changes, both in terms of structure and complexity.
• The regulatory structure of the U.S. Financial system, which was created as a response to the Great Depression and the 1929
stock market crash was designed with a national market in mind.
• The global nature of modern capital markets frequently means that new regulations are imposed in one jurisdiction may have
legal and market effects in the other.
• Cross border fraud poses significant difficulties and challenges to security regulators whose legal powers stop at their own
national borders although their jurisdictions stretch globally.
• The International Capital Market Association is also promoting the international capital market by maintaining the framework
required for cross border issuing, trading and investing through the development internationally accepted market practices and
acting as an intermediary between the governments, regulators, central banks and stock exchanges, both at national and
international level, to ensure that financial regulation promotes the efficiency and cost effectiveness of the international capital
market.
9. US CAPITAL MARKET STRUCTURE
• Fifty years ago, when the Glass-Steagall Act still governed, financial intermediaries in the U.S. capital market were divided into
distinct categories.
• Today, however, financial groups, such as Citibank and JP Morgan Chase, offer a wide range of financial products and services
under a unified marketing structure.
• These intermediaries are regulated by state and federal agencies, and by self-regulatory bodies.
• The health of the capital market depends upon the ethics, morals, professional skills, and attitudes regarding risk of these
intermediaries. These values are changing, not necessarily for the better.
• In recent years, commercial banks have engaged in trading large portfolios of over-the-counter derivatives, giving rise to
operational and market risks.
• The collapse of Long Term Capital Management in 1998, holding derivatives with notional values of over one trillion dollars,
was a warning as to the safety of today's banking practices.
10. Fixed Income and Equity Markets
• Based on market value, about 70% of the U.S. securities market in December 2004 was made up of securitized debt, such as treasury
bonds, corporate bonds, and mortgages.
• The remaining 30% consisted of equities.
• Although equities account for 30% of total market value of traded securities, investors in equities get nothing at all back from issuers
on the principal invested and only about 15% (or less) of total payments of dividends and interest.
• This distortion in stock values has been building since the 1960s with the popularization of mutual funds and the spread of the
'Common Stock Legend' — an unquestioning belief that stocks are the safest way to hold long-term assets.
US CAPITAL MARKET STRUCTURE
11. Sources of New Investment Funds
• The primary sources of new investment money in the U.S. capital market (other than the reinvestment of business profits) is
the personal savings of domestic households and net capital transfers and trade deficits with the rest of the world.
• Price levels in the U.S. market are dependent upon the trade deficit and the prestige of the dollar among foreign investors and
exporters.
• The flows of capital from abroad, mainly related to the U.S. trade deficit, dwarf domestic savings and show how dependent the
U.S. has become upon globalization and the supremacy of the dollar as the international trading currency.
• Foreign investors prefer to hold dollar balances in fixed income securities. As the trade deficit has grown over the last twenty
years, the interest rate on bonds has fallen, due primarily to this massive inflow of foreign capital.
• Any serious impediment to international trade or globalization, or anything that weakened confidence in the dollar or in U.S.
financial intermediaries, would have a profound effect on the U.S. capital market.
US CAPITAL MARKET STRUCTURE
12. Securitization and Institutional Investors
Flow of funds statistics over the last fifty years show two other significant trends:
• Securitization: In the mid-1970s, starting in the mortgage markets, asset-backed securities have been created,
securitizing everything from home mortgages to credit card debt to accounts receivable. This has increased the size
of the fixed income market.
• Institutional Investors: Over three decades, pension funds have become the largest asset held by households,
even surpassing home equity. Because of this trend and the mass-marketing of open-end mutual funds, corporate
control has shifted from individual investors to intermediaries.
US CAPITAL MARKET STRUCTURE
13. Direction of Capital Flows
• capital market as a mechanism whereby savings flow from investors to corporations through financial intermediaries.
• Corporations invest these savings producing jobs and dividends for the investing public.
• The national flow of funds accounts show that in the U.S. equity market this 'normal' flow has been inverted for over a
decade.
• Since the mid-1980s, households (individuals) have been net sellers of equities, while corporations have been net buyers.
• Over the last two decades, U.S. corporations have redeemed (bought back) more than one trillion dollars of their own stock,
net of new issues.
• In contrast, in the bond markets, capital has flowed in the normal direction, form investors to issuers.
• By repurchasing more of their own stock than they have been issuing, domestic corporations have inflated equity values over
twenty years, causing values to exceed instrinsic worth.
US CAPITAL MARKET STRUCTURE
14. Changing Flows, Changing Structures
• Capital Flow Analysis presents a view of financial markets that focuses on long-term shifts in
the flow of funds, as well as on the continuing evolution of market structures.
• Although the U.S. market is large and complex, by following flow of funds accounts over
time, changes in patterns and practices that are reflected in price trends become discernible.
US CAPITAL MARKET STRUCTURE
17. THE DOW
• The Dow Jones Industrial Average (DJIA) is one of the oldest, most well-known and most frequently used indexes in the world.
• It includes the stocks of 30 of the largest and most influential companies in United States.
• The DJIA is what's known as a price weighted index. It was originally computed by adding up the per-share price of the stocks of
each company in the index and dividing this sum by the number of companies - that's why it's called an average.
• Over the years, stock splits, spin-offs and other events have resulted in changes in the divisor, making it a very small number (less
than 0.2).
• The DJIA represents about a quarter of the value of the entire U.S. stock market, but a percent change in the Dow should not be
interpreted as a definite indication that the entire market has dropped by the same percent. This is because of the Dow's price-
weighted function.
18. THE S&P 500
• The Standard & Poor's 500 Stock Index is a larger and more diverse index than the DJIA. Made up of
500 of the most widely traded stocks in the U.S., it represents about 70% of the total value of U.S. stock
markets. In general, the S&P 500 index gives a good indication of movement in the U.S. marketplace as
a whole.
• The S&P 500 index includes companies in a variety of sectors, including energy, industrials, information
technology, healthcare, financials and consumer staples.
19. THE WILSHIRE 5000
• The Wilshire 5000 is sometimes called the "total stock market index" or "total market index" because almost all
publicly-traded companies with headquarters in the U.S. that have readily available price data are included in
the Wilshire 5000.
• Finalized in 1974, this index is extremely diverse, including stocks from every industry.
• Although it's a near-perfect measure of the entire U.S. market, the Wilshire 5000 is referred to less often than
the less comprehensive S&P 500 when people talk about the entire market.
20. THE NASDAQ COMPOSITE INDEX
• Most investors know that the Nasdaq is the exchange on which technology stocks are traded.
• The Nasdaq Composite Index is a market-capitalization-weighted index of all stocks traded on the Nasdaq stock exchange.
• This index includes some companies that are not based in the U.S.
• Although this index is known for its large portion of technology stocks, the Nasdaq Composite also includes stocks from
financial, industrial, insurance and transportation industries, among others.
• The Nasdaq Composite includes large and small firms but, unlike the Dow and the S&P 500, it also includes many speculative
companies with small market capitalizations.
• Consequently, its movement generally indicates the performance of the technology industry as well as investors' attitudes
toward more speculative stocks.
21. THE RUSSELL 2000
• The Russell 2000 is a market-capitalization-weighted index of the 2,000 smallest stocks in the Russell 3000, an
index of the 3,000 largest publicly-traded companies, based on market cap, in the U.S. stock market.
• The Russell 2000 index gained popularity during the 1990s, when small-cap stocks soared and investors moved
more money to the sector.
• The Russell 2000 is the best-known indicator of the daily performance of small companies in the market; it is not
dominated by a single industry.
22. REGULATIONS OF US
STOCK MARKET
The Investor's Advocate: How the SEC Protects Investors,
Maintains Market Integrity, and Facilitates Capital Formation
23. Introduction
• The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and
efficient markets, and facilitate capital formation.
• As more and more first-time investors turn to the markets to help secure their futures, pay for homes, and send
children to college, our investor protection mission is more compelling than ever.
• The world of investing is fascinating and complex, and it can be very fruitful.
• But unlike the banking world, where deposits are guaranteed by the federal government, stocks, bonds and other
securities can lose value. There are no guarantees.
• That's why investing is not a spectator sport.
• By far the best way for investors to protect the money they put into the securities markets is to do research and
ask questions.
24. Creation of the SEC
• The SEC's foundation was laid in an era that was ripe for reform. Before the Great Crash of 1929, there was
little support for federal regulation of the securities markets.
• This was particularly true during the post-World War I surge of securities activity.
• Proposals that the federal government require financial disclosure and prevent the fraudulent sale of stock were
never seriously pursued.
• When the stock market crashed in October 1929, public confidence in the markets plummeted. Investors large
and small, as well as the banks who had loaned to them, lost great sums of money in the ensuing Great
Depression.
25. Organization of the SEC
• The SEC consists of five presidentially-appointed Commissioners, with staggered five-year
terms (see SEC Organization Chart; text version also available).
• One of them is designated by the President as Chairman of the Commission — the agency's
chief executive.
• By law, no more than three of the Commissioners may belong to the same political party,
ensuring non-partisanship.
• The agency's functional responsibilities are organized into five Divisions and 23 Offices,
each of which is headquartered in Washington, DC.
• The Commission's approximately 3,500 staff are located in Washington and in 11 Regional
Offices throughout the country.
26. Responsibility of the Commission to:
• interpret and enforce federal securities laws;
• issue new rules and amend existing rules;
• oversee the inspection of securities firms, brokers, investment advisers, and ratings
agencies;
• oversee private regulatory organizations in the securities, accounting, and auditing
fields; and
• coordinate U.S. securities regulation with federal, state, and foreign authorities.
28. JAPEANESE CAPITAL MARKET STRUCTURE
• The Japanese market particularly in terms of role played by debt instruments , has been for most of its history a
relatively minor element in financial systems dominated by banks.
• The capital market of Japan is gaining over the past decade.
• The market is becoming more broader and deeper.
• There is a still long way to go before the Japanese market is as flexible as US or British.
• The huge outflow of Japanese savings accelerated the modernizing of Japanese capital market by establishing
a close connection between Japanese and other major markets and necessitating certain related adaptations in
the market.
31. Nikkei 225
• The Nikkei 225 , more commonly called the Nikkei, the Nikkei index, or the Nikkei Stock Average, is a stock market index for the Tokyo
Stock Exchange (TSE).
• It has been calculated daily by the Nihon Keizai Shimbun (Nikkei) newspaper since 1950. It is a price-weighted index (the unit is YEN),
and the components are reviewed once a year. Currently, the Nikkei is the most widely quoted average of Japanese equities, similar to the
Dow Jones Industrial Average. In fact, it was known as the "Nikkei Dow Jones Stock Average" from 1975 to 1985.
• The Nikkei 225 began to be calculated on September 7, 1950, retroactively calculated back to May 16, 1949. Since January 2010 the index
is updated every 15 seconds during trading sessions.
• The Nikkei 225 Futures, introduced at Singapore Exchange (SGX) in 1986, the Osaka Securities Exchange (OSE) in 1988, Chicago
Mercantile Exchange (CME) in 1990, is now an internationally recognized futures index.
• The Nikkei average has deviated sharply from the textbook model of stock averages which grow at a steady exponential rate. The average
hit its all-time high on December 29, 1989, during the peak of the Japanese asset price bubble, when it reached an intra-day high of
38,957.44 before closing at 38,915.87, having grown sixfold during the decade. Subsequently, it lost nearly all these gains, closing at
7,054.98 on March 10, 2009—81.9% below its peak twenty years earlier.
32. TOPIX
• Tokyo Stock Price Index , commonly known as TOPIX, along with the Nikkei 225, is an important stock market index for the
Tokyo Stock Exchange (TSE) in Japan, tracking all domestic companies of the exchange's First Section. It is calculated and
published by the TSE.
• As of 1 February 2011, there are 1,669 companies listed on the First Section of the TSE, and the market value for the index was
¥197.4 trillion.
• The index transitioned from a system where a company's weighting is based on the total number of shares outstanding to a
weighting based on the number of shares available for trading (called the free float).
• This transition took place in three phases starting in October 2005 and was completed in June 2006.
• Although the change is a technicality, it had a significant effect on the weighting of many companies in the index, because many
companies in Japan have significant holdings of shares of their business partners as a part of intricate business alliances, and
such shares are no longer included in calculating the weight of companies in the index.