At the beginning of 2007, CBV-Index was introduced to the financial market of Vietnam by Bien Viet Securities.
The Index was known as the first and only index that reflects the performance of the whole stock market of Vietnam, covering securities listed on the only two exchanges, Hanoi Securities Trading Center and Hochiminh Stock Exchange.
The council selects the companies in CBV-Index so that they meet the following criteria: CBV-Index measures the change of average stock market prices using float adjusted market capitalization method.
The percentage of shares available for public investors- public float (IWF- Investable Weight Factor) will be calculated using the following formula: Then, float adjusted market capitalization index will be calculated according to the following formula: Pi is market price of share i, Qi is the number of listed shares.
Divisor D will be adjusted so that CBV index will not be affected as the result of issuance of additional shares, addition of newly listed companies or removal of listed companies in CBV index.