To be considered for inclusion in the S&P/ASX 300 Index, a company must meet specific market capitalization and liquidity criteria. The S&P/ASX 300 encompasses the top 300 companies listed on the Australian Securities Exchange (ASX) by float-adjusted market capitalisation, covering large-cap, mid-cap, and small-cap segments.
Market Capitalisation Requirement: Companies typically need a market capitalisation above approximately AUD 100 million to be eligible for inclusion.
Liquidity Requirement: A minimum relative liquidity of 30% is required. Relative liquidity is calculated by dividing a stocks median daily value traded by its average float-adjusted market capitalization over the previous six months. If a companys relative liquidity falls below 15%, it becomes ineligible and is removed at the next rebalancing.
It’s important to note that meeting these thresholds does not guarantee inclusion, as the index is reviewed semi-annually, and companies are ranked relative to their peers. Additionally, market conditions can cause these thresholds to fluctuate over time.
CAY Price at posting:
28.5¢ Sentiment: Buy Disclosure: Held
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