market averages


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Average

A simple way to calculate the relative price of an index of stocks that involves adding the prices of all the stocks in the index and dividing by the total number of stocks. Market averages may be weighted, for example, for price or market capitalization. Movements in the market average of an index are considered a way to observe trends in the health of the companies represented in it. Some market averages are taken as an indicator of health in the broader economy; prominent examples of this include the Dow Jones Industrial Average and S&P 500 indices.

market averages

See averages.
References in periodicals archive ?
These funds simply buy all the stocks on the S&P 100 list, or all the stocks that make up the Dow Jones industrials, or all the bonds in the various bond indexes, and they've equaled the market average by definition.
PNC ANALYSTS: MARKET AVERAGES UNLIKELY TO GO HIGHER
With most equity market averages and mutual funds down for the year, the average investor is suffering.
With slightly less than an hour to go in the trading day, major market averages are hovering close to the breakeven zone.
P/E ratios are down to levels not seen in years on the broad stock market averages.