capitalization-weighted index

capitalization-weighted index definition - finance
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 ExchangeÂ’s Gold & Silver Sector Index, and the Utility Sector Index are examples of capitalization-weighted indices. Also called market-value weighted indices.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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