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 ?
THE US30, commonly known as the DOW30, is a price-weighted index of the largest publicly traded companies on the NYSE.
The iPhone and iPad maker had been notable by its absence in the 30-stock average, and it had been excluded because its stock price was too high for the price-weighted index.
The iPhone and iPad maker had been notable by its absence in the Dow industrials, and the technology giant had been excluded because its stock price was too high for the price-weighted index.
According to market analysts, higher-priced stocks have bigger impact on Dow Jones since it is a price-weighted index.
The price-weighted index tracks the stock performance of 50 of the largest publicly traded companies headquartered in the San Fernando, Conejo, Simi, Santa Clarita and Antelope valleys.
Based on these levels, GS and V will be two of the most important components for the price-weighted index, as they will beat out Chevron ($120/share), but will likely fall just short of IBM.
The Dow Jones industrial average, a price-weighted index, tracks the share prices of 30 large U.
8% and the Burrill Biotech Select Index, a price-weighted index tracking 20 of biotech's "blue chip" companies, was down 5%.
SAN FRANCISCO, April 1, 2008 /PRNewswire/ -- The biotech industry came through a very turbulent first quarter relatively unscathed with the Burrill Biotech Select Index, a price-weighted index tracking 20 of biotech's "blue chip" companies, finishing unchanged compared to the Dow, which closed down 7.
4% while Burrill Biotech Select Index, a price-weighted index tracking 20 of biotech's "blue chip" companies, finished up a whopping 14%.
The Bloomberg Illinois Index is a price-weighted index designed to measure the performance of the Illinois economy.

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