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NYSE Arca Steel Index - New York Stock Exchange - us steel stock news


NYSE Arca Steel Index - New York Stock Exchange-us steel stock news

THE NYSE ARCA STEEL INDEX
INDEX DESCRIPTION
The NYSE Arca Steel Index ("Index") is a modified market capitalization weighted index comprised of
publicly traded companies involved primarily in the production of steel products or mining and
processing of iron ore. The Index divisor was initially determined to yield a benchmark value of 500.00
at the close of trading on December 31, 2003. The Index is calculated and maintained by NYSE Arca.
Similar to other stock indices calculated by NYSE Arca, the value of the Index will be disseminated
every 15 seconds over the Consolidated Tape Association's Network B between the hours of
approximately 9:30am and 4:15pm, under the symbol "STEEL".
ELIGIBILITY CRITERIA FOR INDEX COMPONENTS
The Index includes common stocks or ADRs of selected companies that are involved in a variety of
activities that are related to steel production, including the operation of mills manufacturing steel, the
fabrication of steel shapes or products, or the extraction and reduction of iron ore. Only those companies
listed for trading on the New York Stock Exchange, NYSE Amex, or quoted on the NASDAQ National
Market that have a market capitalization greater than $100 million and a daily average traded volume of
at least $1 million dollars over the past three months are eligible to be considered for inclusion in the
Index.
INDEX CALCULATION
The Index is calculated using a modified market capitalization weighting methodology. The Index is
weighted based on the market capitalization of each of the component stocks, modified to conform to the
following asset diversification requirements, which are applied in conjunction with the scheduled
quarterly adjustments to the index:
(1) the weight of any single component stock may not account for more than 20% of the total
value of the Index;
(2) the aggregate weight of those component stocks which individually represent more than 5%
of the total value of the Index may not account for more than 50% of the total Index value.
QUARTERLY REVIEW
The Index is reviewed quarterly so that the Index components continue to represent the universe of
companies involved in the iron ore mining or steel production. NYSE Arca may at any time and from
time to time change the number of stocks comprising the group by adding or deleting one or more stocks,
or replace one or more stocks contained in the group with one or more substitute stocks of its choice, if in
the Exchange's discretion such addition, deletion or substitution is necessary or appropriate to maintain
the quality and/or character of the index to which the group relates. Changes to the Index compositions
and/or the component share weights in the Index typically take effect after the close of trading one
business day prior to the last business day of each calendar quarter month in connection with the
quarterly index rebalance. At the time of the Index quarterly rebalance, the weights for the components
stocks (taking into account expected component changes and share adjustments), are modified in
accordance with the following procedures.
MAINTENANCE OF THE INDEX
The Index is reviewed quarterly to ensure that at least 90% of the Index weight is accounted for by Index
components that continue to meet the initial eligibility requirements. Components will be removed from
the Index during the quarterly review, if the market capitalization falls below $75 million or the three-
month daily average traded volume falls below $750 thousand. In conjunction with the quarterly review,
the share weights used in the calculation of the Index are determined based upon current shares
outstanding modified, if necessary, to provide greater Index diversification, as described in the Index
Calculation section above. The Index components and their share weights are determined and announced
prior to taking effect. The share weight of each component stock in the Index portfolio remains fixed
between quarterly reviews except in the event of certain types of corporate actions such as stock splits,
reverse stock splits, stock dividends, or similar events. The share weights used in the Index calculation
are not typically adjusted for shares issued or repurchased between quarterly reviews. However, in the
event of a merger between two components, the share weight of the surviving entity may be adjusted to
account for any stock issued in the acquisition. NYSE Arca may substitute stocks or change the number
of stocks included in the index, based on changing conditions in the industry 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 Index portfolio, the payment of dividends other than ordinary
cash dividends, spin-offs, rights offerings, re-capitalization, or other corporate actions affecting a
component stock of the Index; the Index divisor may be adjusted to ensure that there are no changes to
the Index level as a result of non-market forces.

Why is US Steel stock up? U.S. Steel (X) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might help the stock continue moving higher in the near term. Credit Suisse analyst Curt Woodworth upgraded stock in United States Steel and Cleveland Cliffs because the supply/demand balance is too tight.