Capitalization-Weighted Index

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Capitalization-Weighted Index

A stock index which is computed by adding the capitalization (float times price) of each individual stock in the index, and then dividing by the divisor. The stocks with the largest market values have the heaviest weighting in the index. See also Float, Divisor.

Capitalization-Weighted Index

An index in which the price is determined by the price of individual stocks, weighted for total market value. For example, if the price of a component stock of the index changes, its effect on the index as a whole is proportionate to share's price multiplied by the number of shares the company has outstanding. This means that changes in price will affect the index more if the component company has greater value. Most non-American market value-weighted indices give further weighting (called float-weighted indexing) to properly account for partial government ownership of many large corporations. This method of index weighting contrasts with a price-weighted index, in which all price changes are weighted differently, and a market share-weighted index, which weights only by the number of shares outstanding and not by their value. Major examples of a market value-weighted index include the NASDAQ Composite Index and the Standard & Poor's 500. The latter uses float-weighted indexing to match its calculations more closely with foreign counterparts.
References in periodicals archive ?
SEE LinX is a market capitalization weighted index adjusted for the free-float of each constituent, while SEE LinX EWI is an equally weighted index with the same constituents.
HC rebalanced its HC Market Index (HCMI), a market capitalization weighted index rebalanced semi-annually, on Jan.
an 100% market capitalization weighted index following the formulae of the International Finance Corporation (IFC).
The MSCI US REIT Index is a free float-adjusted market capitalization weighted index that is comprised of equity REITs that are included in the MSCI US Investable Market 2500 Index, with the exception of specialty equity REITs that do not generate a majority of their revenue and income from real estate rental and leasing operations.
7 percent, the NIC-50 - a market capitalization weighted index which tracks the 50 most traded KSE-listed companies, rose by 196.
BBRC tracks the Indxx Beyond BRICs Index, a free-float market capitalization weighted index of 50 stocks from a universe that includes Chile, Colombia, Czech Republic, Egypt, Hungary, Indonesia, Malaysia, Morocco, Mexico, Peru, Philippines, Poland, South Africa, Thailand and Turkey.
The S&P 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy.
The MSCI Frontier Market Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of frontier markets.
The Russell Equal Weight Index series, available in a similar format to existing Russell Indexes, extends Russell's global line-up beyond market capitalization weighted index construction.
That pipeline includes single factor products and global index products as well as alternative or non-market capitalization weighted index products.
OOK and TXF are based on the SPADE Index, a modified market capitalization weighted index that seeks to measure the performance of publicly traded companies that are headquartered in or have significant operations in Oklahoma and Texas.
TXF is based on the SPADE Texas Index, a modified market capitalization weighted index that seeks to measure the performance of publicly traded companies headquartered in Texas.