Board of Governors of the Federal Reserve System

Beginning 1996, stocks outstanding are the sum of the market value of common and preferred equity for life insurance companies. The stocks outstanding of common equity is calculated from CRSP micro data as the sum of shares outstanding times share price at the end of the quarter, using SIC and 623069013ICS codes to identify life insurance entities. The stocks outstanding of total financial and nonfinancial preferred equity is benchmarked to data from Standard and Poor's and is calculated for other periods using a perpetual inventory method based on transactions data from Thomson Financial and the Standard and Poor's U.S. Preferred Stock Index. Total preferred stock is then allocated to life insurance companies by applying the life insurance companies' share of total domestic financial corporate equity to the financial portion of the preferred stock, using a ratio from Standard and Poor's Compustat to split out preferred stock between financial and nonfinancial corporations. Prior to 1996, life insurance companies' public corporate equities also includes life insurance companies' closely held corporate equities (FOF series FL543164123). Unadjusted transactions from tabulation of gross issuance SDC data (maintained by Capital Markets section) less tabulation of share repurchases from Standard and Poor's Compustat.