The Nielsen–Schreier theorem says that every subgroup of a free group is free. Realize as the fundamental group of the rose , the graph with one vertex and oriented loops. A subgroup of finite index of a subgroup corresponds to a connected -sheeted covering graph . The graph has vertices and unoriented edges. Choosing a spanning tree leavesedges outside the tree, and these freely generate . Thus the Nielsen–Schreier formula is
Take the free abelian group , whose rank of a group is two, and its finite-index subgroup . The subgroup has index two and is again isomorphic to , so its rank is two. The Nielsen–Schreier formula would instead give . Henceis a counterexample.
Let be the rank of a group, let be a generating set of size , and suppose . Choose a Schreier transversal adapted to a spanning tree in the Schreier coset graph. By Schreier's lemma, is generated by the elementsThere are candidates. The oriented edges in the spanning tree give trivial candidates, leaving at most . This proves the Schreier index-rank inequality
Let have a generating set of a group with elements. Every subgroup of index gives a transitive group action of on the left cosets of , hence a group homomorphism after the cosets are labelled. Conversely, is the stabilizer subgroup of one point in this action.
A homomorphism is determined by the images of the generators, so there are at most such homomorphisms and at most point stabilizers. Therefore the finiteness of subgroups of a fixed finite index gives only finitely many subgroups of index .
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