WHAT IS THE 'Salomon Brothers World Equity Index - SBWEI'

Saloman Brothers World Equity Index (SBWEI) is an index that measures the performance of fixed-income and equity securities from domestic and international markets that consist of companies with a float of at least $100 million.

BREAKING DOWN 'Salomon Brothers World Equity Index - SBWEI'

Salomon Brothers World Equity Index is an index that tracks both stocks and debt securities in publicly-traded companies worldwide. The SBWEI includes companies in which the total number of shares available for trade is worth at least $100 million. The SBWEI uses a top-down approach when evaluating companies, and each security within the SBWEI index is weighted according to its float. Float refers to the number of a corporation’s shares that are outstanding and available for trading by the public, excluding restricted stock. A stock’s volatility is inversely related to its float. Every company represented in the SBWEI is weighted according to the total value of its shares that are available for trade.

The SBWEI includes securities from more than 6,000 companies located in 22 different countries

The Salomon Brothers

The Salomon Brothers World Equity Index is named after Arthur, Herbert and Percy Salomon, who founded Salomon Brothers in 1910. Salomon Brothers was one of the largest Wall Street investment banks. Salomon Brothers provided a wide range of financial services and established its name in the financial markets through its fixed-income trading department.

Over the years Salomon Brothers went through many mergers, acquisitions and changes. In 1981, Salomon Brothers was acquired by Phibro Corporation and became known as Phibro-Salomon. In 1997, the bank merged with Smith Barney, a subsidiary of Travelers Group, to form Salomon Smith Barney. Immediately following the Travelers Group merger, the bank merged with Citigroup, where Salomon Smith Barney served as the investment banking arm. In 2003, Salomon Brothers adopted the Citigroup name.

Many investors regarded Salomon Brothers as one of the most elite multinational investment banks. The financial institution was part of what was known as the bulge bracket, which includes the companies in an underwriting syndicate. Bulge bracket is also a term for the most profitable multi-national investment banks in the world whose banking clients are normally large, influential institutions, corporations and governments.

Author Michael Lewis documented the Salomon Brothers' rise and fall in his 1989 book, "Liar's Poker." Lewis’ book goes into detail about the high-pressure bond trading culture at Salomon Brothers, which has inspired the popular view of Wall Street in the 1980s and 1990s as a ruthless playground for those in reckless pursuit of profit.

RELATED TERMS
  1. Clean Float

    A clean float, also known as a pure exchange rate, occurs when ...
  2. Floating Lien

    A floating lien, also known as a floating charge, is a way for ...
  3. Floating Interest Rate

    A floating interest rate is an interest rate that is allowed ...
  4. Dirty Float

    A dirty float is a floating exchange rate whereby the government ...
  5. Federal Reserve Float

    The Federal Reserve float refers to the over-estimation of the ...
  6. Indexing

    In the financial markets, indexing can be used as a statistical ...
Related Articles
  1. Investing

    Fixed-income trader: job description and salary

    Understand what kind of skills, necessary licenses, and daily activities are needed as the requirements and find out what the average salary of a fixed income trader.
  2. Investing

    The Hidden Flaws of Index Investing

    Index investing isn't always better than active investing. Here's why.
  3. Investing

    3 Types Of Indexing For ETF Success

    ETF success relies on the index with which it's paired. Discover three index genres for tracking average market performance.
  4. Investing

    The Basics Of Outstanding Shares And The Float

    We go over different types of shares and what investors need to know about them.
  5. Investing

    The Pros and Cons of Indexes

    Learn about the advantages and disadvantages of stock indexes and passive index funds. Discover how there is an opportunity cost to using index funds.
  6. Trading

    Dual And Multiple Exchange Rates 101

    Why would a country choose to implement dual or multiple exchange rates? It's risky, but it can work.
  7. Investing

    ETF Tracking Errors: Protect Your Returns

    Tracking errors tend to be small, but they can still adversely affect your returns. Learn how to protect against them.
  8. Investing

    5 Things You Need To Know About Index Funds

    Index funds, at their best, offer a low-cost way for investors to track popular stock and bond market indexes. But not all index funds are created equally.
  9. Trading

    Using index futures to predict the future

    Want to know whether the stock market will open up or down? Learn about index futures and how they can help predict how the market will trade.
RELATED FAQS
  1. What exactly is a company's float?

    The term "float" refers to the regular shares that a company has issued to the public that are available for investors to ... Read Answer >>
  2. What is the difference between market capitalization and equity?

    Understand the difference between market capitalization and equity, two primary measurements used to evaluate the worth of ... Read Answer >>
Hot Definitions
  1. Portfolio

    A portfolio is a grouping of financial assets such as stocks, bonds and cash equivalents, also their mutual, exchange-traded ...
  2. Gross Profit

    Gross profit is the profit a company makes after deducting the costs of making and selling its products, or the costs of ...
  3. Diversification

    Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting ...
  4. Intrinsic Value

    Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, and may differ ...
  5. Current Assets

    Current assets is a balance sheet item that represents the value of all assets that can reasonably expected to be converted ...
  6. Volatility

    Volatility measures how much the price of a security, derivative, or index fluctuates.
Trading Center