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Definition

The indexes are produced as a joint venture between the FTSE group and the JSE. These indexes are mostly in your software and have short codes beginning with "J" such as the FTSE/JSE Overall Index which has the short code J203. There are seven headline indexes which cover the main divisions of the market and there are indexes for every sector - such as the banks index which is J835 or the beverages index which is J353. The indexes are weighted for their free float market capitalisation. A company's free float is the percentage of its issued shares which are readily avaliable for trade - so it excludes (for example) shares held by the founders of the company or which are part of an employee share option scheme. The free-float market capitalisation of the company is calculated by multiplying its free float by the current share price. The FTSE/JSE indexes are weighted according to the free-float market capitalisation of the shares which they include.

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