Broad-Base

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Broad-Base

Generally referring to an index, it indicates that the index is composed of a sufficient number of stocks or of stocks in a variety of industry groups. See also: Narrow-Based.

Broad-Based Index

An index that consists of many stocks or stocks in many different industries. Broad-based indices are not terribly useful in gauging the performance of individual industries, but help give an indication on movements in the broader economy. An example of a broad-based index is the Wilshire 5000. See also: Narrow-based.

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