MARKET CAPITALISATION (market cap)
The market capitalisation of a company is calculated by multiplying the market price of its ordinary shares by the number in issue. It gives an instant idea of the size and substance
of a company.

POSITION
This shows the current position of the company within the market overall, after ranking all fellow constituents including investment trusts.

INDEX
Each share is included in one of the following six categories and ranked according to its position. The table below summarises the distribution in June 1998:-



The position of a share gives an idea of whether or not it is firmly placed in its index or is likely to be promoted or demoted. For example, a share in the FTSE 100 Index with the position of 99 might be hanging in there by its teeth.

The Review Panel meets each quarter to decide upon which companies are to be demoted or promoted. The new positions are always reflected in the next issue of REFS

The importance of promotion to and demotion from one index to another, or in and out of the indices altogether, should not be under-estimated. Many institutions only buy shares in the main indices and most tracker funds are compelled to buy a promoted share and sell a demoted one. Advance warning of the likelihood of promotion or demotion is therefore
crucially important..