Narrow based stock index
The FTSE TWSE Taiwan 50 Index consists of the largest 50 companies by full market value, and is also the first narrow-based index published in Taiwan. 23 Nov 2009 The statutory definition of the term “narrow-based security index” is designed to distinguish among indexes composed of individual stocks. 2 days ago Cash flow into Vietnam's 30 biggest stocks narrowed the VN-Index's Ho Chi Minh Stock Exchange (HoSE), on which the VN-Index is based. The term “equity option” includes such an option on a group of stocks only if such group meets the requirements for a narrow-based security index (as so defined). under the Commodity Exchange Act and “security-based swap” under the securities in a narrow-based security index, provided that such event directly affects Release that they would view a quanto equity swap as a security-based swap if
26 Apr 2018 The U.S. stock market has been struggling to break out of a tight trading directions, keeping major indexes trading in a fairly narrow range. Ryan Vlastelica is a markets reporter for MarketWatch and is based in New York.
Equity; Broad and Narrow Based Equity Indexes only. Other than equity options and broad-based and narrow-based equity index options, only stock index warrants are eligible for purchase on margin. [For all other option types, the requirement is the same as for a 9 month or less option (above).] Pay for each put or call in full. Stock market index option is a type of option, a financial derivative, that is based on stock indices like the S&P 500 or the Dow Jones Industrial Average. They give an investor the right to buy or sell the underlying stock index for a defined time period. NYA | A complete NYSE Composite Index index overview by MarketWatch. View stock market news, stock market data and trading information. The S&P 100 Index is a stock market index of United States stocks maintained by Standard & Poor's.. Index options on the S&P 100 are traded with the ticker symbol "OEX". Because of the popularity of these options, investors often refer to the index by its ticker symbol. 1 Other than equity options and broad and narrow based equity index options, only stock index warrants are eligible for purchase on margin. 5 Short Put or Short Call Broad Based Index Put Deposit cash or cash equivalents2 equal to aggregate exercise price, or an escrow agree-ment3 for a short index put option.
4 Dec 2019 The broad-based index with the fewest stocks is the Dow Jones Industrial the AMEX Major Market Index, and the NASDAQ Composite Index.
Whereas stock options are based on a single company’s stock, index options are based on a basket of stocks representing either a broad or a narrow band of the overall market. Narrow-based indexes are based on specific sectors like semiconductors or the financial industry, and tend to be composed of relatively few stocks. Broad-based indices, as defined below, will remain under the CFTC’s jurisdiction. Broad-Based Stock Indices If a futures contract on a stock index satisfies either of the criteria set forth in Path A or Path B below, it qualifies as a broad-based index under the CFTC’s exclusive jurisdiction: The narrow-based formula provides a greater number of additional shares of common stock to be issued to the holders of preferred stock upon conversion than under the broad-based formula. The extent of the difference between the two formulas depends upon the size and relative pricing of the dilutive financing as well as the number of shares of preferred stock and common stock outstanding. Any security index futures contract traded on or subject to the rules of a foreign board of trade that meets such requirements that are jointly established by rule or regulation by the CFTC and SEC is excluded from the definition of narrow-based (Section 1a (25) (B) (iv) Authorized, but unissued, stock is not counted in the fully-diluted, capitalization number. The effect of including the additional shares in the broad-based formula reduces the magnitude of the anti-dilution adjustment given to holders of preferred stock as compared to the narrow-based formula.
Under the CFMA, an index is narrow-based if any component stock comprises more than 30% of the index's weighting. Second, an index is narrow-based if the five highest weighted component stocks (in
Describing an index that consists of only a few stocks. Generally speaking, a narrow-based index only includes stocks from one industry. These indices are often Describing an index that consists of only a few stocks. Generally speaking, a narrow-based index only includes stocks from one industry. These indices are often Narrow-Based Security Index: In general, the Commodity Exchange Act defines a narrow-based security index as an index of securities that meets one of the Narrow-Based. Generally referring to an index, it indicates that the index is composed of only a few stocks, generally in a specific industry group. See also
Futures contracts based on a stock index that are are settled in cash on a daily The trade will attempt to net a profit from the widening or narrowing of these
Broad-based Security Index Although not defined in the CEA, a broad-based security index generally refers to any security index that would not be classified as a narrow-based security index under the definitions or exclusions set forth in the CEA and the Securities Exchange Act of 1934 or that meet certain criteria specified jointly by the CFTC and the SEC. Equity; Broad and Narrow Based Equity Indexes only. Other than equity options and broad-based and narrow-based equity index options, only stock index warrants are eligible for purchase on margin. [For all other option types, the requirement is the same as for a 9 month or less option (above).] Pay for each put or call in full. Stock market index option is a type of option, a financial derivative, that is based on stock indices like the S&P 500 or the Dow Jones Industrial Average. They give an investor the right to buy or sell the underlying stock index for a defined time period.
Equity vs. Index Options. 9 n Pricing Factors n Underlying Instrument n Volatility lowing discussion refers only to stock indexes and Others are narrow-based.