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No progress on sharesÂ’ free float -DAWN - Business; March, 14 2005 (1158 words) |
 | Free float weighted indexes are sorely needed in our market because our bench mark index, KSE-100, which is weighted by market capitalization, is unfit for index futures or index funds. |
| Given the limited free float market and its negative implications, there is a need for a candid debate on whether or not there should be a regulatory minimum free float for a listed company and if yes, what should be that minimum level. |
| Free float is being calculated and successfully used in many countries, including neighbouring India, and we hope that KSE and SECP shall soon take this initiative for the development of our capital market. |
| Free float (486 words) |
| The free float of a company is the proportion of shares that are likely to be tradeable on the market. |
| Indices such the FTSE are adjusted for the free float, so that companies are weighted by the total value of shares that are actually available to portfolio investors (i.e. |
| Free float tends to be a much more important issue for smaller companies which commonly have several strategic shareholders and where directors shareholdings can be a significant part of the total share capital. |
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