Broad-Base
Broad-Base
Generally referring to an index, it indicates that the index is composed of a sufficient number of stocks or of stocks in a variety of industry groups. See also: Narrow-Based.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Broad-Based Index
An index that consists of many stocks or stocks in many different industries. Broad-based indices are not terribly useful in gauging the performance of individual industries, but help give an indication on movements in the broader economy. An example of a broad-based index is the Wilshire 5000. See also: Narrow-based.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved