Narrow-Based

(redirected from Narrow-Based Index)

Narrow-Based

Generally referring to an index, it indicates that the index is composed of only a few stocks, generally in a specific industry group. See also broad-based.

Narrow-Based

Describing an index that consists of only a few stocks. Generally speaking, a narrow-based index 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.

narrow-based

Of or relating to an index composed of a limited number of securities or securities representing a particular segment of the whole. For example, the Dow Jones Transportation Average is narrow-based because it is composed only of the stocks of transportation companies. Compare broad-based.
References in periodicals archive ?
Trading in single stock and narrow-based index futures (other than on certain exempted securities) was prohibited (see GAO, 2000).
The SEC was left with jurisdiction over a narrowly defined subset of 'security-based swaps' that includes swaps on a single or narrow-based index of securities primarily single-name or narrow-based credit default swaps and total return swaps.
In addition, an option on a narrow-based index of stock will generally be an equity option.
Narrow-Based Index (NBI) Futures--contracts based on a small basket of stocks from a narrow sector of the market (e.g., airlines or chemicals); and

Full browser ?