Weighted Index/Unweighted Index
- Stock indices are calculated in two ways, either weighted or unweighted. The unweighted indices are simple arithmetic or geometric averages. In weighted indices certain stocks carry a greater weighting than others, usually based on their market value or capitalization.
Financial and business terms. 2012.
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weighted index — An index where the impact of each of the index constituents is weighted, usually by reference to the market value of each constituents. To give a simple illustration, an index of two companies, where the first company has a total market… … Financial and business terms
ASE Market Capitalization Weighted Index — The ASE Market Capitalization Weighted Index is a stock index of the Amman Stock Exchange in Jordan. The ASE Weighted Index is one of two principal stock indices on the exchange, the other being the ASE Unweighted Price Index. The ASE Unweighted… … Wikipedia
unweighted index — An index where all the constituents of the index are equally weighted when calculating the index value. This has a weakness in that it tends to overstate the importance of the smaller constituents of the index. One of the few examples of this is… … Financial and business terms
Unweighted Index — A simple arithmetic or geometric average used to calculate stock indexes. Equal weight is invested in each of the stocks in an index with equal dollar amounts invested in each underlying stock. Because the stocks are equally weighted, one stock s … Investment dictionary
stock index — An indicator used to measure and report value changes in a selected group of stocks. How a particular stock index tracks the market depends on its composition the sampling of stocks, the weighing of individual stocks, and the method of averaging… … Financial and business terms
List of price index formulas — A number of different formulas, at least hundreds, have been proposed as means of calculating price indexes. While price index formulas all use price and quantity data, they amalgamate this data in different ways. A price index generally… … Wikipedia
Consumer price index — CPI redirects here. For other uses, see CPI (disambiguation). A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households. The CPI, in the United States is defined by the Bureau of Labor … Wikipedia
Arithmetic Index — An index of securities that uses an arithmetic sum to determine changes in the index without taking the relative size of the securities into account. An arithmetic index of stocks does not incorporate weightings based on market capitalization,… … Investment dictionary
Mean — This article is about the statistical concept. For other uses, see Mean (disambiguation). In statistics, mean has two related meanings: the arithmetic mean (and is distinguished from the geometric mean or harmonic mean). the expected value of a… … Wikipedia
Stock market — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond … Wikipedia