The ASCX is the main small-cap index of the Amsterdam Stock Exchange in the Netherlands. It represents a selection of smaller capitalization companies that are part of the Dutch stock market.

This index provides insight into the performance of small companies in the Dutch market, and is weighted by market capitalization. This implies that companies with a larger capitalization within this segment have a greater impact on the index.

A number of ASCX companies distribute dividends on a regular basis, although the list of companies and their reputations may vary given the nature of small caps.

How is the ASCX value calculated?

The daily value of the ASCX stock index is calculated using a formula based on the capitalization of its constituent companies:

ASCX(t) = ASCX(t - 1) × Σ Capi(t) / [ Σ Capi(t - 1) ± J ]

A J adjustment factor is used to ensure that financial transactions such as capital increases or reductions do not cause drastic fluctuations in the share price.

The value of the ASCX on a given day is obtained by multiplying the ASCX value of the previous day by a percentage, which is obtained from the sum of the capitalizations of the companies on day t, divided by the sum of the capitalizations on day t-1.

The daily capitalization of a particular company is derived by multiplying the total number of its shares by their market value on that day.

For example, if the ASCX closes today at 2,000 points and the total capitalization of its companies is, say, 50 billion, if the next day the capitalization reached 51 billion, the value of the ASCX at closing would be:

ASCX (specific day) = 2,000 x 51/50 = 2,040 basis points.