SecurityStockWatch.com 100 Index:
Equal-Dollar Weight Index
Calculation Algorithms

Calculation Algorithms - At Date Index is Established
Each constituent is assigned a Weighted Value of $10,000.
Formula: Weighted Value = $10,000 (for each constituent)

Each constituent’s Weighted Shares are calculated by dividing its Weighted Value ($10,000) by its Share Price on the day the index is established.
Formula: Weighted Shares = Weighted Value / Share Price (for each constituent)

All constituents’ Weighted Values ($10,000) are totaled to an Index Market Value.
Formula: Index Market Value = Sum (Weighted Value of Constituent 1: Weighted Value of Constituent Last)

A Divisor is calculated that will yield an Index Value of 100 when divided into the Index Market Value.
Formula: Divisor = Index Market Value / Index Value (100)

Calculation Algorithms - Between Rebalancing
Individual Market Values are calculated by multiplying each constituent’s Weighted Shares times its current Share Price.
Formula: Individual Index Market Value = Weighted Shares X Share Price (for each constituent)

The Index Market Value is obtained by totaling all of the constituents’ Individual Market Values.
Formula: Index Market Value = Sum (Individual Index Market Value of Constituent 1: Individual Index Market Value of Constituent Last)

The Index Value is calculated by dividing the Index Market Value by the Divisor.
Formula: Index Value = Index Market Value / Divisor

Calculation Algorithms - Rebalancing
The index will be rebalanced on the third Friday of the quarter-ending month, which coincides with triple witching of index futures, index options and stock options.

Rebalancing starts with the calculation of the Index Value as between rebalancing.
Formulas: Individual Index Market Value = Weighted Shares X Share Price (for each constituent)

Index Market Value = Sum (Individual Index Market Value of Constituent 1: Individual Index Market Value of Constituent Last)

Index Value = Index Market Value / Divisor

Each constituent’s Weighted Shares are recalculated by resetting its Weighted Value to $10,000 and dividing it by each constituent’s Share Price on the day the index is rebalanced.
Formulas: Weighted Value = $10,000 (for each constituent)
Weighted Shares = Weighted Value / Share Price (for each constituent)

The Index Market Value is rebalanced to the amount set when the index was established by totaling all of the constituents’ Individual Market Values.
Formula: Index Market Value = Sum (Weighted Value of Constituent 1: Weighted Value of Constituent Last)

The Divisor is adjusted to yield the same Index Value calculated before rebalancing by multiplying the Index Value before rebalancing times the result of dividing the new Index Market Value by the Index Market Value before rebalancing.
Formula: Index Value New = Index Value Old, therefore, Divisor New = Index Value New / (Index Market Value New / Index Market Value Old)