Average


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Related to Average: standard deviation

Average

An arithmetic mean return of selected stocks intended to represent the behavior of the market or some component of it. One good example is the widely quoted Dow Jones Industrial Average, which adds the current prices of the 30 DJIA stocks, and divides the results by a predetermined number, the divisor.

Average (across-day) measures

An estimation of price that uses the average or representative price of a large number of trades.

Average

A simple way to calculate the relative price of an index of stocks that involves adding the prices of all the stocks in the index and dividing by the total number of stocks. Market averages may be weighted, for example, for price or market capitalization. Movements in the market average of an index are considered a way to observe trends in the health of the companies represented in it. Some market averages are taken as an indicator of health in the broader economy; prominent examples of this include the Dow Jones Industrial Average and S&P 500 indices.

average

See averages.

Average.

A stock market average is a mathematical way of reporting the composite change in prices of the stocks that the average includes.

Each average is designed to reflect the general movement of the broad market or a certain segment of the market and often serves as a benchmark for the performance of individual stocks in its sphere.

A true average adds the prices of the stocks it covers and divides that amount by the number of stocks.

However, many averages are weighted, which usually means they count stocks with the largest market capitalizations more heavily than they do others. Weighting reflects the impact that the stocks of the biggest companies have on the markets and on the economy in general.

The Dow Jones Industrial Average (DJIA), which tracks the performance of 30 large-company stocks, is the most widely followed market average in the United States.

References in periodicals archive ?
Westlake High School students scored an average 538 verbal and 561 math on the current test.
Three of the four local high school districts for which results were reported scored better on average than students in Los Angeles County and Los Angeles Unified on college entrance exams, but all four scored less than the statewide average.
Senate Democrats' average was $253,732, and the median was $102,000.
Throughout the Burbank district, the verbal average was 483 and math, 496.
Although the majority of the categories reported showed increases in average prices over 1997 data, the average price of a one-bedroom apartment in Soho decreased to $114,000 from $123,100 in 1997, and in Greenwich Village, lofts decreased in price to $380,833 from $411,158 in 1997.
Last week, the average price of gasoline reached $3.
But most in second, third, fourth, ninth, 10th and 11th grades fell short of the average mark.
In addition to prices spiraling up, the average length of time a property stays on the market has dropped significantly.
0 grade point average and plans to major in English when she matriculates at Harvard University this fall.
The result will be a further increase in prices across the board, both in average and real dollar terms.
The average asking price of those in escrow increased to $738,799, or $304 per average square foot.