Price-weighted index


Also found in: Wikipedia.

Price-weighted index

An index giving a greater influence to higher-valued stocks by weighting all component stocks by their price.

Price-Weighted Index

An index that tracks a number of securities in which price changes in stocks that already have higher prices affect the index's price changes more than other securities. For example, suppose an index tracks three stocks: A, B, and C. If A has a higher price than B and C, an uptick in A will be more likely to result in an uptick in the index as a whole (depending on how much more weighted it is). Price weighted indices are less common than capitalization-weighted indices, but the Dow Jones Industrial Average is a prominent example.
References in periodicals archive ?
Kuwait was the best performing market in the GCC in 2017, with a price-weighted index return of 16.
The Nikkei 225, a price-weighted index containing the top 225 blue-chip companies trading on the Tokyo Stock Exchange, just reached a 21-year high.
The iPhone and iPad maker had been notable by its absence in the 30-stock average, and it had been excluded because its stock price was too high for the price-weighted index.
The iPhone and iPad maker had been notable by its absence in the Dow industrials, and the technology giant had been excluded because its stock price was too high for the price-weighted index.
According to market analysts, higher-priced stocks have bigger impact on Dow Jones since it is a price-weighted index.
In a price-weighted index, caviar will have the biggest overall impact because it's the most expensive item you've bought, even though you spent far more money on tuna.
The Dow Jones industrial average, a price-weighted index, tracks the share prices of 30 large U.

Full browser ?