Constituent

Constituent
A single member of an index. A constituent is typically a stock or company that is part of a larger index such as the S&P500 or Dow Jones Industrial Average. The aggregate of all the constituents make up the index, and generally each constituent has to meet the requirements and be selected to be included in the index.

For example, to become a constituent in the S&P500, a stock has to meet certain requirements with regard to market cap, market exposure, liquidity, etc. Indexes also periodically review their constituents to make sure they are meeting the minimum requirements, and if they don't, the index may remove the constituents from the index. This can negatively affect the constituents' reputation with investors.


Investment dictionary. . 2012.

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  • constituent — con·stit·u·ent 1 /kən sti chə wənt/ n 1: one who authorizes another to act as agent: principal 2: a member of a constituency constituent 2 adj: having the power to create a government or to frame or amend a constitution …   Law dictionary

  • Constituent — or constituency may refer to: Contents 1 In politics 2 In the physical sciences 3 Other meanings 4 See also In …   Wikipedia

  • constituent — CONSTITUÉNT, Ă, constituenţi, te, adj., s.n. 1. adj. Care intră în constituţia unui întreg. 2. s.n. Fiecare dintre substanţele care intră într un sistem fizico chimic (fizicochimic). [pr.: tu ent] – Din fr. constituant. Trimis de Joseph,… …   Dicționar Român

  • Constituent — Con*stit u*ent (k[o^]n*st[ict]t [ u]*[ e]nt), a. [L. constituens, entis, p. pr. See {Constitute}.] 1. Serving to form, compose, or make up; elemental; component. [1913 Webster] Body, soul, and reason are the three parts necessarily constituent of …   The Collaborative International Dictionary of English

  • constituent — [adj1] component, part basic, combining, composing, constituting, division, elemental, essential, factor, forming, fraction, fundamental, ingredient, integral, portion; concepts 826,834,835 Ant. whole constituent [adj2] voting balloter, citizen,… …   New thesaurus

  • constituent — [kən stich′o͞o ənt] adj. [< L constituens, prp. of constituere: see CONSTITUTE] 1. necessary in forming or making up a whole; component [a constituent part] 2. that can or does appoint or vote for a representative 3. authorized to make or… …   English World dictionary

  • Constituent — Con*stit u*ent, n. 1. The person or thing which constitutes, determines, or constructs. [1913 Webster] Their first composure and origination require a higher and nobler constituent than chance. Sir M. Hale [1913 Webster] 2. That which constitutes …   The Collaborative International Dictionary of English

  • Constituent — Constituent. См. Составляющая. (Источник: «Металлы и сплавы. Справочник.» Под редакцией Ю.П. Солнцева; НПО Профессионал , НПО Мир и семья ; Санкт Петербург, 2003 г.) …   Словарь металлургических терминов

  • constituent — 1620s, one who appoints or elects a representative, from L. constituentem (nom. constituens), prp. of constituere (see CONSTITUTE (Cf. constitute)). The notion is to make up or compose a body by appointing or electing a representative. As an adj …   Etymology dictionary

  • constituent — n component, *element, ingredient, factor Analogous words: *part, portion, piece, detail, member: *item, particular Antonyms: whole, aggregate Contrasted words: *system, complex, organism, economy: composite, compound, blend, amalgam (see… …   New Dictionary of Synonyms

  • constituent — ► ADJECTIVE 1) being a part of a whole. 2) having the power to appoint or elect. 3) able to make or change a political constitution. ► NOUN 1) a member of a constituency. 2) a component part. ORIGIN Lat …   English terms dictionary

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