Índice Bovespa

The Bovespa Index (Portuguese: Índice Bovespa), best known as Ibovespa is the benchmark index of about 86 stocks[1] traded on the B3 (Brasil Bolsa Balcão), accounting for the majority of trading and market capitalization in the Brazilian stock market.

The index is a total return index composed by a theoretical portfolio as follows:[2] Selection criteria: Being amongst the eligible stocks that account for 85% in descending order by individual tradability ratio (IN); Traded in 95% of the trading sessions; 0.1% of the value traded on the cash equity market (round lots); and must not be a penny stock.

[2] Its index number represents the present value of a portfolio begun on 2 January 1968, with a starting value of 100 and taking into account share price increases plus the reinvestment of all dividends, subscription rights that the constant's bonus stocks received.

On 11 September 2013, BM&FBOVESPA announced the changes to the Ibovespa methodology, which would be implemented in a two-phased approach by May 2014.

The principal changes to the index methodology included:[2] The index has been adjusted as follows, most of the adjustments occurred during the time Brazil experienced high rates of inflation during the 1980s and early 1990s: The following table shows the annual development of the Índice Bovespa since 1998.