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 nonfinancial C-corporations and S-corporations, excluding eREITs. The market value of S-corporations is estimated by multiplying the net worth data of S-corporations in nonfinancial industries (identified by 2-digit NAICS 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 nonfinancial industries. A ratio of how much eREIT companies make up each nonfinancial industry's market value from Standard and Poor's Compustat, with eREIT companies being identified from Standard and Poor's company information, is used to split out the eREIT share of the calculated market stocks outstanding values from SOI for each nonfinancial 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 split between financial, nonfinancial and eREIT corporations 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. Prior to 1996, nonfinancial business' closely held equity is included with nonfinancial business' public corporate equities (FOF series FL103164113), excluding eREIT (FOF series FL123164123). Series has no transactions component. Data for the most recent ten years show no significant seasonality.