The S&P/ASX 200 Index is a market capitalization weighted, float adjusted stock market index including stocks featured on the ASX or Australian Securities Exchange.
The ASX 200 benchmark index was created in the year 2000 and is made up of 200 of the largest companies listed on the ASX. It is one of many indices created by S&P Dow Jones and is considered Australia’s primary index. The All Ordinaries index was the primary index used in Australia until the ASX 200 was published.
The ASX 200 is re-balanced quarterly, at this time companies are removed and added according to their current market capitalization. Stocks must also meet liquidity requirements before they become part of the index. This means a percentage of the company’s outstanding shares must be traded regularly for them to be eligible for the index.