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Definition: ABA Bank Index
It is a banking index comprising of community banks primarily formed to represent the smaller institutions in the sector. It trades on NASDAQ under the symbol ABAQ. It’s a market capitalization-weighted index. ABAQ index was composed of 380 community banks with a capitalization of approximately $183.5 billion as of Dec 2013.
Banks with following properties are not included in the index.
• Any one of the fifty largest banks and their subsidiaries.
• Any banks or their subsidiaries categorized as “International specialization”.
• Any banks or their subsidiaries categorized as having “Credit card specialization”.
The index is calculated in 2 ways, supported by price changes solely, and a complete return value. The price-based calculation is computed throughout the day. It includes NASDAQ trades only. The total return value is based on the NASDAQ Official Closing Price considering dividends as being reinvested as of the ex-dividend date.
Banks and their subsidiaries are added to the index biyearly in June and December based on corporations listed at the end of the previous month that meet the criteria of the index. Corporations that are no longer listed on NASDAQ are deleted from the index.