Price-weighted index

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Price-weighted index

An index giving a greater influence to higher-valued stocks by weighting all component stocks by their price.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
The SXCP unit price implied by the exchange ratio represents a 9.3% premium to SXCP's closing price on February 4, 2019 and a 12.7% premium, based on SXC's and SXCP's 30-day volume weighted average prices ending February 4, 2019.
* Minimum prices and weighted average prices of tobacco.
Apart from the above, the weighted average prices of flue-cured Virginia and white patta tobaccoes stand protected under the provisions of provincial laws in NWFP (reproduced below) as follow:
White Patta Tobacco: The weighted average prices to be paid by the tobacco companies and tobacco dealers, agents and mandiwalas during 1985 crop shall not be less than paisa 750 per kg.

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