Market value-weighted index

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Market value-weighted index

An index of a group of securities computed by calculating a weighted average of the returns on each security in the index, where the weights are proportional to outstanding market value.

Capitalization-Weighted Index

An index in which the price is determined by the price of individual stocks, weighted for total market value. For example, if the price of a component stock of the index changes, its effect on the index as a whole is proportionate to share's price multiplied by the number of shares the company has outstanding. This means that changes in price will affect the index more if the component company has greater value. Most non-American market value-weighted indices give further weighting (called float-weighted indexing) to properly account for partial government ownership of many large corporations. This method of index weighting contrasts with a price-weighted index, in which all price changes are weighted differently, and a market share-weighted index, which weights only by the number of shares outstanding and not by their value. Major examples of a market value-weighted index include the NASDAQ Composite Index and the Standard & Poor's 500. The latter uses float-weighted indexing to match its calculations more closely with foreign counterparts.
References in periodicals archive ?
The S&P MidCap 400 Index is a market-value weighted index which consists of 400 domestic stocks chosen for market size, liquidity, and industry group representation.
The Markit iBoxx[R] $ Liquid High Yield Index is a modified market-value weighted index designed to provide a balanced representation of U.
Gener8 Maritime has a fully-delivered fleet of 46 vessels, comprised of 21 VLCC newbuildings and 25 vessels on the water consisting of seven VLCCs, 11 Suezmaxes, four Aframaxes, two Panamax tankers, and one Handymax tanker, together comprising over 10 million deadweight tons with a market-value weighted average age of less than 5 years upon delivery of the newbuildings based on current market values.
The Markit iBoxx $ Liquid Investment Grade Index is a modified market-value weighted index designed to provide a balanced representation of U.
It is a market-value weighted index (stock price times number of shares outstanding), with each stock's weight in the index proportionate to its market value.
S&P Midcap 400 Index: An index of 400 mid-size domestic equity company stocks in various industries; it is a market-value weighted index.
The S&P 500 Index is a market-value weighted index consisting of 500 stocks chosen for market size, liquidity, and industry group representation, with each stock's weight in the Index proportionate to its market value.
Treasury Index family is abroad, comprehensive, market-value weighted family of indices that seeks to measure the performance of the U.
It is a market-value weighted index (stock price times the number of shares outstanding), with each stock's weight in the Index proportionate to its market value.
The S&P 500 is a market-value weighted index - each stock's weight in the index is proportionate to its market value.
The S&P 500 Index is a market-value weighted index comprised of 500 stocks selected for marked size, liquidity and industry group representation.