Narrow-Based Weighted Average(redirected from Narrow Based Weighted Average)
Narrow-Based Weighted Average
Describing an index that consists of only a few stocks and is weighted for price or market capitalization. Generally speaking, a narrow-based weighted average only includes stocks from one industry. These indices are often useful in gauging the performance of the industries they track but rarely give an indication on movements in the broader economy. See also: Broad-Based.