Price-weighted index

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Price-weighted index

An index giving a greater influence to higher-valued stocks by weighting all component stocks by their price.

Price-Weighted Index

An index that tracks a number of securities in which price changes in stocks that already have higher prices affect the index's price changes more than other securities. For example, suppose an index tracks three stocks: A, B, and C. If A has a higher price than B and C, an uptick in A will be more likely to result in an uptick in the index as a whole (depending on how much more weighted it is). Price weighted indices are less common than capitalization-weighted indices, but the Dow Jones Industrial Average is a prominent example.
References in periodicals archive ?
Award criteria: 40% weighted technical value and price weighted 60%
19 Euro per share represents a premium of 36% compared to the Company's closing price as of June 8, 2015 and 36% compared to the average price weighted by volumes over the period of 20 trading days ending June 8, 2015 (inclusive);
In price weighted indices such as the DJIA, a large change in price of a high priced stock can have a material impact on sector representation in the index and this index change is designed to minimize that impact.
A price weighted average of 30 actively traded blue-chip stocks, primarily industrial industry stocks that trade on the New York Stock Exchange.
days weighted average of the Bovespa closing price weighted by
The DJIA is price weighted so extremely high stock prices tend to distort the index while very low stock prices have little impact.
common stock per share trading price weighted for the total
This price weighted index is comprised of 100 listed and over-the-counter securities.
Broad based and price weighted, the index measures the combined performance of 100 listed and over-the-counter stocks in 15 different industries.
The Large Cap Index is price weighted, giving each company equal contribution to the average.
Being price weighted allows for greater diversification and reduces dependence upon one company or a handful of companies to determine the performance of the index.
The PHLX OTC Prime Sector (OTX), is a price weighted index of the 15 most active stocks traded on the NASDAQ, with corporations involved in a variety of industries including: electronic components, telecommunications, wide-area networks, computer and computer component manufacturing, computer software and Internet services.