On some days, the percentage change in the I Fund share price that we report can be significantly different from the percentage change reported for the MSCI ACWI IMI ex USA ex China ex Hong Kong Index, which the I Fund tracks. These differences usually occur when our investment managers find it necessary to reprice its MSCI ACWI IMI ex USA ex China ex Hong Kong Index Fund, in which we invest, to reflect changes that happen after international markets close.
This adjustment process, known as “fair valuation” or “fair value pricing,” occurs when there are U.S. market or currency movements between the time international markets close and 4:00 p.m., eastern time, when the MSCI ACWI IMI ex USA ex China ex Hong Kong Index Fund share prices are determined. International markets around the world close in different time zones.
For example, the Far East markets close at 3:00 a.m., eastern time. If there is a major event afterwards—whether a natural disaster or even a major U.S. market swing that affects the pricing of the stocks in the MSCI ACWI IMI ex USA ex China ex Hong Kong Index Fund—without fair value pricing, that event’s impact on share pricing would be ignored. That is, the price information from the international markets can become “stale”, or out of date, by the close of the U.S. markets at 4:00 p.m., eastern time—a full 13 hours later. Without fair value pricing, market timers could buy the I Fund and sell their holdings on the following day in order to benefit from the “stale” pricing. They would accomplish this transaction at the expense of other investors in the fund.
Fair value pricing ensures that traders do not benefit from trading on stale prices. It prevents traders from using events that may have occurred between the close of international markets and the close of the U.S. market, which may have affected MSCI ACWI IMI ex USA ex China ex Hong Kong Index Fund prices, to achieve an unfair trading and profit advantage at the expense of long-term shareholders.
FAQs
Calculate the Average Price: Divide the total cost of all shares by the total number of shares acquired. This gives you the average price per share. Optional: Adjust for dividends and fees: If appropriate, modify the average price per share to reflect any dividends received or transaction fees paid.
How do you calculate share price from equity? ›
The formula to calculate equity value per share subtracts net debt from enterprise value, and then divides by the total number of shares outstanding. The enterprise value is adjusted to remove all non-equity claims, which can include net debt (i.e. total debt minus cash), preferred stock and non-controlling interest.
How do you calculate issue price per share? ›
Start by adding the net proceeds to the costs in order to find the gross (total) proceeds from the stock issuance. Then, divide the gross proceeds by the number of shares issued to calculate the issue price per share.
How do you calculate cost per share? ›
Average Cost per share = Total purchases ($2,750) ÷ total number of shares owned (56.61) = $48.58. To calculate the average cost, divide the total purchase amount ($2,750) by the number of shares purchased (56.61) to figure the average cost per share = $48.58.
Is there a formula for stock price? ›
We can calculate the stock price by simply dividing the market cap by the number of shares outstanding. Let's now think about why we can calculate it this way. The Market Cap (aka Market Capitalization) reflects the market value of the equity of the company.
How can I calculate shares? ›
Calculating the value of a shareholding
To value a shareholding you will need to multiply the number of shares owned by the price per share.
How is a share price determined? ›
Once a company goes public and its shares start trading on a stock exchange, its share price is determined by supply and demand in the market. If there is a high demand for its shares, the price will increase. If the company's future growth potential looks dubious, sellers of the stock can drive down its price.
What is an example of a share price? ›
It's calculated by multiplying the total outstanding shares by the price. For example, if a company has 1 million outstanding shares and each share is priced at $50, the market cap would be $50 million. In this way, the market cap is the market's valuation of the entire company.
How is share price calculated during trading? ›
Exchanges calculate a stock's price in real time by finding the price at which the maximum number of shares are transacted at the moment. The price changes if there is a change in the buy or sell offer for the shares. It is the market price of the stock and it can be different from the intrinsic price.
How is per share calculated? ›
To calculate earnings per share, take a company's net income and subtract preferred dividends. Then divide that amount by the average number of outstanding common shares.
Use the selling price formula to find out the final price i.e.: SP = CP + Profit Margin.
How do you calculate share price ratio? ›
P/E Ratio is calculated by dividing the market price of a share by the earnings per share. For instance, the market price of a share of the Company ABC is Rs 90 and the earnings per share are Rs 9 . P/E = 90 / 9 = 10.
How do you calculate share cost? ›
A stock average calculator determines the average price per share by dividing the total cost of shares by the total number of shares. The formula is straightforward: Total Cost ÷ Total Shares = Stock Average. For added accuracy, it may also factor in transaction fees.
How do you estimate share price? ›
Price-to-earnings ratio (P/E): Calculated by dividing the current price of a stock by its EPS, the P/E ratio is a commonly quoted measure of stock value. In a nutshell, P/E tells you how much investors are paying for a dollar of a company's earnings.
How do you calculate the price per share of equity? ›
Calculate the book value of the company. Count up all of the company's outstanding shares. Divide the company's book value by the total number of shares.
How do you estimate the value of shares? ›
The most common way to value a stock is to compute the company's price-to-earnings (P/E) ratio. The P/E ratio equals the company's stock price divided by its most recently reported earnings per share (EPS). A low P/E ratio implies that an investor buying the stock is receiving an attractive amount of value.
What is the formula for predicting share price? ›
This method of predicting future price of a stock is based on a basic formula. The formula is shown above (P/E x EPS = Price). According to this formula, if we can accurately predict a stock's future P/E and EPS, we will know its accurate future price.
