Índice Bovespa

The index is a total return index composed by a theoretical portfolio as follows: 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. It is weighted by free float. It is revised on a 4-month portfolio cycle in January, May, and September. On average, the components of Ibovespa represent 70% of all the stock value traded. 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. ==History and adjustments==

Prior to 2014, the index was composed by a theoretical portfolio with the stocks that accounted for 80% of the volume traded in the last 12 months and that were traded at least on 80% of the trading days. It was revised quarterly, in order to keep its representativeness of the volume traded and in average the components of Ibovespa represented 70% of all the stock value traded. 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: • Weighting function – previously a liquidity-driven weighting, starting from January 2014, weighting is now based on market value attributable to a constituent’s free float, with a liquidity cap (Tradability Ratio) set at twice the hypothetical weight of the constituent • The Tradability Ratio (Índice de Negociabilidade, or IN) is now calculated to take into account 1/3 of a component’s share of the overall number of trades and 2/3 of the component’s share of the overall value traded on the cash equity market; • The Tradability Ratio cut-off threshold for a stock to qualify for inclusion in the index has been raised from 80% to 85% • The 'active trading' requirement, as measured based on number of trading sessions, has been raised from 80% to 95% • In flotations of issuers listed over the course of the two previous portfolio cycles, the new stocks are now accepted for early index membership • Stocks that qualify as penny stocks are now ineligible for inclusion in the index • Stocks which at any rebalancing classify by individual Tradability Ratio over a certain period, collectively account for over ninety percent (90%) of the sum total of such metric, are now removed from the index • The criteria pursuant to which a constituent stock which is suspended from trading retains index membership or is removed from the index have been made clear • A limit was introduced in terms of the maximum relative weight of a company’s total contribution to the index. ==Adjustments==

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: • division by 100, on 3 October 1983 • division by 10, on 2 December 1985 • division by 10, on 29 August 1988 • division by 10, on 14 April 1989 • division by 10, on 12 January 1990 • division by 10, on 28 May 1991 • division by 10, on 21 January 1992 • division by 10, on 26 January 1993 • division by 10, on 27 August 1993 • division by 10, on 10 February 1994 • division by 10, on 3 March 1997 ==Record values==

The following table shows the annual development of the Índice Bovespa since 1998. For a list of the components of the index, check the article List of companies listed on Ibovespa. ==See also==