Index Sample for 2011

The Amman Stock Exchange calculates a price index weighted by the market capitalization of free-float shares. The market capitalization of each company included in the index is calculated by multiplying it's total number of listed shares with the last close price and then by a number called " factor " .

The factor is a number between zero and one. The calculation of this factor depends on the company's free-float ratio that represents the total listed shares minus the shares owned by the board of directors, investors who own more than 5% and any government ownership. The ASE changes the value of this factor quarterly at the time of the index re-balancing.

The ASE applies the Dow Jones Company rules when deciding to change or to keep the value of the factor. Dow Jones updates the factor quarterly only for those companies whose free float varies more than (5%) when compared with the previous quarter factor. It is worth mentioning that Dow Jones is considered one of the leading global index providers and it calculates an index for the ASE called (Dow Jones ASE 100).

The weight of each individual company is capped at (10%) in order to prevent the index from being dominated by individual companies. Therefore, the factor value is reduced for any company which weighs more than (10%) of the market capitalization of the index. It is worth mentioning that the factor value does not necessarily represent the free-float ratio of the company.