Board of Governors of the Federal Reserve System

Beginning in 1996, stocks outstanding estimated by FOF Section as the sum of the market value of life insurance C-corporations and S-corporations. The market value of S-corporations is estimated by multiplying the net worth data of S-corporations in financial and nonfinancial industries (identified by 2-digit 623069013ICS codes) from the IRS SOI Table S- Corporation Returns: Balance Sheet and Income Statement Items, by Major Industry, by the average ratio of market value to net worth from Standard and Poor's Compustat for public companies in the same industries. A ratio of how much life insurance companies make up each industry's market value from Standard and Poor's Compustat, with life insurance companies being identified from SIC and 623069013ICS codes, is used to split out the life insurance share of the calculated market stocks outstanding values from SOI for each industry. The market value of C-corporations is estimated by multiplying the revenue data of companies that appear on Forbes' annual list of America's Largest Private Companies by the ratio of total market value to total revenue of public companies from Standard and Poor's Compustat with similar industry, employment, and revenue profiles. The total market value of C-corporations is allocated to life insurance companies using the same splits available from the S-corporations calculations. The total market value of C-corporations and S-corporations is adjusted downward by 25 percent to reflect the lack of liquidity of closely held shares. Series has no transactions component. Data for the most recent ten years show no significant seasonality.