Capitalization-Weighted Index

Capitalization-Weighted Index
A stock index which is computed by adding the capitalization (float times price) of each individual stock in the index, and then dividing by the divisor. The stocks with the largest market values have the heaviest weighting in the index. Bloomberg Financial Dictionary
See also float, divisor. Bloomberg Financial Dictionary

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   A weighted average of the price of constituent stocks. Each stock is weighted according to its market capitalization relative to the total index.
   ► See also Stock Index, Market Capitalization.

Financial and business terms. 2012.

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