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24-774: The FTSE 250 Index , also called the FTSE 250 , or, informally, the " Footsie 250 " / ˈ f ʊ t s i / , is a stock market index that measures the real strength of the economy of the United Kingdom and consists of the 101st to the 350th mid-cap blue chip companies listed on the London Stock Exchange . The index consists of 38 sectors , three of which have a market cap exceeding £25 billion as at 28 June 2024. These are collective investments , investment banking & investment services , and residential and commercial REIT , which together account for approximately 56% of

48-423: A stock index , or stock market index , is an index that measures the performance of a stock market , or of a subset of a stock market. It helps investors compare current stock price levels with past prices to calculate market performance. Two of the primary criteria of an index are that it is investable and transparent : The methods of its construction are specified. Investors may be able to invest in

72-442: A stock index that complies with Sharia 's ban on alcohol, tobacco and gambling. Critics of such initiatives argue that many firms satisfy mechanical "ethical criteria" (e.g. regarding board composition or hiring practices) but fail to perform ethically with respect to shareholders (e.g. Enron ). Indeed, the seeming "seal of approval" of an ethical index may put investors more at ease, enabling scams. One response to these criticisms

96-524: A stock market index by buying an index fund , which is structured as either a mutual fund or an exchange-traded fund , and "track" an index. The difference between an index fund's performance and the index, if any, is called tracking error . Stock market indices may be classified and segmented by the set of underlying stocks included in the index, sometimes referred to as the "coverage". The underlying stocks are typically grouped together based on their underlying economics or underlying investor demand that

120-445: A weighted measurement as opposed to a basic physical measurement of energy level. For sound, the unit is the phon (1 kHz equivalent level). In the fields of acoustics and audio engineering, it is common to use a standard curve referred to as A-weighting , one of a set that are said to be derived from equal-loudness contours . Auditory frequency weighting functions for marine mammals were introduced by Southall et al. (2007). In

144-477: Is in television, in which the red, green and blue components of the signal are weighted according to their perceived brightness. This ensures compatibility with black and white receivers and also benefits noise performance and allows separation into meaningful luminance and chrominance signals for transmission. Skin damage due to sun exposure is very wavelength dependent over the UV range 295 to 325 nm, with power at

168-404: Is often not realised that equal loudness curves, and hence A-weighting, really apply only to tones, as tests with noise bands show increased sensitivity in the 5 to 7 kHz region on noise compared to tones. Other weighting curves are used in rumble measurement and flutter measurement to properly assess subjective effect. In each field of measurement, special units are used to indicate

192-470: Is spread over a spectrum of frequencies. In the measurement of loudness , for example, a weighting filter is commonly used to emphasise frequencies around 3 to 6 kHz where the human ear is most sensitive, while attenuating very high and very low frequencies to which the ear is insensitive. A commonly used weighting is the A-weighting curve, which results in units of dBA sound pressure level. Because

216-472: Is that investors must, in aggregate, hold a capitalization-weighted portfolio anyway. This then gives the average return for all investors; if some investors do worse, other investors must do better (excluding costs). Passive management is an investing strategy involving investing in index funds, which are structured as mutual funds or exchange-traded funds that track market indices. The SPIVA (S&P Indices vs. Active) annual "U.S. Scorecard", which measures

240-451: Is that trust in the corporate management, index criteria, fund or index manager, and securities regulator, can never be replaced by mechanical means, so " market transparency " and " disclosure " are the only long-term-effective paths to fair markets. From a financial perspective, it is not obvious whether ethical indices or ethical funds will out-perform their more conventional counterparts. Theory might suggest that returns would be lower since

264-592: The Calvert Social Index , Domini 400 Social Index , FTSE4Good Index , Dow Jones Sustainability Index , STOXX Global ESG Leaders Index, several Standard Ethics Aei indices, and the Wilderhill Clean Energy Index. Other ethical stock market indices may be based on diversity weighting (Fernholz, Garvy, and Hannon 1998). In 2010, the Organization of Islamic Cooperation announced the initiation of

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288-646: The FTSE 100 Index (which lists the largest 100 companies), the FTSE 350 Index (which combines the FTSE 100 and 250), the FTSE SmallCap Index and the FTSE All-Share Index (an aggregation of the FTSE 100 Index, the FTSE 250 Index and the FTSE SmallCap Index). The index began on 12 October 1992 at the base level of 2,403, and a market capitalisation of £98 billion. The highest closing value of 24,250.80

312-461: The S&;P 500 Index, have multiple versions. These versions can differ based on how the index components are weighted and on how dividends are accounted. For example, there are three versions of the S&P 500 Index: price return, which only considers the price of the components, total return, which accounts for dividend reinvestment, and net total return, which accounts for dividend reinvestment after

336-420: The deduction of a withholding tax . The Wilshire 4500 and Wilshire 5000 indices have five versions each: full capitalization total return, full capitalization price, float-adjusted total return, float-adjusted price, and equal weight. The difference between the full capitalization, float-adjusted, and equal weight versions is in how index components are weighted. One argument for capitalization weighting

360-540: The frequency response of human hearing varies with loudness, the A-weighting curve is correct only at a level of 40- phon and other curves known as B- , C- and D-weighting are also used, the latter being particularly intended for the measurement of aircraft noise. In broadcasting and audio equipment measurements 468-weighting is the preferred weighting to use because it was specifically devised to allow subjectively valid measurements on noise, rather than pure tones. It

384-664: The index is seeking to represent or track. For example, a 'world' or 'global' stock market index—such as the MSCI World or the S&;P Global 100 —includes stocks from all over the world, and satisfies investor demand for an index for broad global stocks. Regional indices that make up the MSCI World index, such as the MSCI Emerging Markets index, include stocks from countries with a similar level of economic development, which satisfies

408-433: The index's market cap . At the same date there was one company with a market cap exceeding £4 billion: Polar Capital , which accounts for approximately 1% of the market cap. Each calendar quarter, the FTSE 250's constituents are reviewed and some companies will either exit or enter the index, resulting in irregular trading volume and price changes as market participants rebalance their portfolios . Related indices are

432-583: The investible universe is artificially reduced and with it portfolio efficiency. (It conflicts with the Capital Asset Pricing Model, see above.) On the other hand, companies with good social performances might be better run, have more committed workers and customers, and be less likely to suffer reputation damage from incidents (oil spillages, industrial tribunals, etc.) and this might result in lower share price volatility , although such features, at least in theory, will have already been factored into

456-473: The investor demand for an index for emerging market stocks that may share similar economic fundamentals. The coverage of a stock market index is separate from the weighting method. For example, the S&P 500 market-cap weighted index covers the 500 largest stocks from the S&P Total Market Index, but an equally weighted S&P 500 index is also available with the same coverage. Stock market indices may be categorized by their index weight methodology, or

480-412: The market price of the stock. The empirical evidence on the performance of ethical funds and of ethical firms versus their mainstream comparators is very mixed for both stock and debt markets. Weighting While weighting may be applied to a set of data, such as epidemiological data, it is more commonly applied to measurements of light, heat, sound, gamma radiation , and in fact any stimulus that

504-445: The measurement of gamma rays or other ionising radiation, a radiation monitor or dosimeter will commonly use a filter to attenuate those energy levels or wavelengths that cause the least damage to the human body but letting through those that do the most damage, so any source of radiation may be measured in terms of its true danger rather than just its strength. The resulting unit is the sievert or microsievert. Another use of weighting

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528-452: The performance of indices versus actively managed mutual funds, finds the vast majority of active management mutual funds underperform their benchmarks, such as the S&P 500 Index, after fees. Unlike a mutual fund, which is priced daily, an exchange-traded fund is priced continuously and is optionable . Several indices are based on ethical investing , and include only companies that meet certain ecological or social criteria, such as

552-498: The rules on how stocks are allocated in the index, independent of its stock coverage. For example, the S&P 500 and the S&P 500 Equal Weight each cover the same group of stocks, but the S&P 500 is weighted by market capitalization , while the S&P 500 Equal Weight places equal weight on each constituent. Some common index weighting methods are listed below. In practice, many indices will impose constraints, such as concentration limits, on these rules. Some indices, such as

576-417: Was reached on 1 September 2021. The following table lists the annual changes in the FTSE 250 index. Whilst the FTSE 250 had no retail products prior to its 1992 inception date, in the 1990's the index returns were back-calculated to 1986. Indicative values as follows: The following table lists the FTSE 250 companies after the changes on 22 November 2024. Stock market index In finance ,

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