Narrow-Based

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Narrow-Based

Generally referring to an index, it indicates that the index is composed of only a few stocks, generally in a specific industry group. See also broad-based.

Narrow-Based

Describing an index that consists of only a few stocks. Generally speaking, a narrow-based index only includes stocks from one industry. These indices are often useful in gauging the performance of the industries they track, but rarely give an indication on movements in the broader economy. See also: Broad-based.

narrow-based

Of or relating to an index composed of a limited number of securities or securities representing a particular segment of the whole. For example, the Dow Jones Transportation Average is narrow-based because it is composed only of the stocks of transportation companies. Compare broad-based.
References in periodicals archive ?
The Commodities Futures Modernization Act of 2000 amended the Commodity Exchange Act to allow trading of futures contracts on individual equity securities and narrow-based indices of equity securities.
With this new capability, SunGard customers will be able to trade OneChicago single stock futures and narrow-based indices immediately upon OneChicago's launch, expected later this year.
Penson Becomes an Early Leader Among Securities Broker/Dealers in Providing Access to Trade Single Stock Futures and Narrow-Based Indices
OneChicago, LLC today announced seven new narrow-based indices on which it will list futures contracts when trading at the Exchange begins later this year.
CME), and Chicago Board of Trade (CBOT(R)) for trading single-stock futures and narrow-based indices.
Single stock futures are futures on individual stocks and narrow-based indices.
Futures on narrow-based indices are scheduled for launch in February 2003.
The Exchange is listing futures on narrow-based indices as well, which are already listed on the OneChicago Web site at http://www.
Rainer said, "OneChicago is ready to offer futures on individual stocks and narrow-based indices.
When trading begins later this year, OneChicago will list futures contracts on over 80 stocks and 15 narrow-based indices.
By offering flexibility in clearing organizations to our customers, OneChicago will enable firms to incorporate single stock futures and narrow-based indices more easily into their existing business processes," said William J.