capitalization-weighted index Hear it!

capitalization-weighted index Finance Definition

A stock index in which each stock affects the index in proportion to its market value. The NASDAQ Composite Index, the S&P 500 Index, the Wilshire 5000 Equity Index, the Philadelphia Stock Exchange’s Gold & Silver Sector Index, and the Utility Sector Index are examples of capitalization-weighted indices. Also called market-value weighted indices.