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Capitalization-Weighted Index

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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. See also Float, Divisor.


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The new financial instrument, called Lyxor ETF Japan (Topix), is aimed at giving both institutional and private investors access to the market capitalization-weighted index made up of all the 1,718 firms traded on the TSE First Section, the three said in a joint statement.
The exchange said a contract it has signed with Morgan Stanley ''aims to meet the strong demand for a hedging and investing instrument that is based on a globally recognized, capitalization-weighted index, which reflects the sectoral diversity of the Japanese equity markets.
The Robeco Developed World Equity Index (RBDWEX), a modified market capitalization-weighted index, is designed to capture the performance of liquid, tradable global investment opportunities including the U.
 
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