Electronic security supplier NAPCO Security Systems Inc. will get another foothold among investors after the company announced it has been included as a member of the new Russell Microcap Index. The new index, introduced in May, measures the performance of “microcap” companies.
The U.S. Securities and Exchange Commission defines a microcap as a company with “low or ‘micro’ total value of the company’s stock.”
“The inclusion in such an index will grant NAPCO additional exposure within the investment community and is a true testament to the growth the company has experienced in reaching this benchmark,” said NAPCO CEO Richard Soloway.
Russell indexes are used by investment managers and institutional investors as benchmarks for passive and active investment strategies. Investment managers who oversee these funds purchase shares of member stocks according to a company’s weight in a particular index.
