market averages


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Average

A simple way to calculate the relative price of an index of stocks that involves adding the prices of all the stocks in the index and dividing by the total number of stocks. Market averages may be weighted, for example, for price or market capitalization. Movements in the market average of an index are considered a way to observe trends in the health of the companies represented in it. Some market averages are taken as an indicator of health in the broader economy; prominent examples of this include the Dow Jones Industrial Average and S&P 500 indices.

market averages

See averages.
References in periodicals archive ?
That was after he mentioned that "portfolio managers have a hard time beating the market averages.' I could hardly believe he'd said it.
It also helps explain why "high-growth" stocks tend to trade at P/Es above the market averages. In the business valuation process, the market multiples of guideline companies, combined with meaningful analysis, can give you useful insights about private companies and divisional businesses.
In the spring of 1999, he leading stock market averages were at record levels, led by technology stocks.