SPADE® Texas Index
Requirements for Inclusion in the SPADE Total Texas®
Corporate headquarters within the State of Texas
Listed on the New York Stock Exchange (NYSE) or quoted on the NASDAQ.
A minimum $100 million market valuation
A minimum $5.00 daily sale price
Maintain sufficient liquidity
The SPADE Texas Index is calculated using a modified market capitalization weighting methodology. Companies representing the largest 90% of firms by market capitalization in the SPADE Total Texas are selected and their weights are modified to conform to asset diversification rules, which are applied in conjunction with the scheduled quarterly updates to the Index.
Maintenance of the Index: Mergers, Dividends, Share Changes
In the event of a merger between two components, the share weight of the surviving entity may be adjusted to account for any shares issued in the acquisition.
ISBC/SPADE Indexes may substitute components or change the number of issues included in the SPADE Texas Index, based on changing conditions in the marketplace or in the event of certain types of corporate actions, including mergers, acquisitions, spin-offs and reorganizations.
In the event of component or share weight changes to the SPADE Texas Index portfolio, the payment of dividends other than ordinary cash dividends, spin-offs, rights offerings, re-capitalizations or other corporate actions affecting a component of the SPADE Texas Index, the SPADE Texas Index divisor may be adjusted to ensure that there are no changes to the SPADE Texas Index level as a result of nonmarket forces.
For changes in a component's shares outstanding greater than 5% due to a merger, acquisition or spin-off, an adjustment will be made effective after the close on the effective date of the corporate action. Share changes less than 5% are made during the scheduled quarterly updates to the SPADE Texas Index.
Review Frequency: Quarterly
Changes to the SPADE Texas Index composition and/or the component share weights in the SPADE Texas Index typically take effect after the close of trading on the next to last business day of each calendar quarter month (Rebalance Date) - March, June, September, December. The components and weights will be determined and announced at the close of trading two days prior to the Rebalance Date. In conjunction with the quarterly review, the share weights used in the calculation of the SPADE Texas Index are updated based upon current shares.