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Price-weighted index

Business Price-earnings ratioPricing efficiency

Price-weighted index of the 100 most widely traded stocks on the DAX Index, the German market index.
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Price-weighted index - This kind of index tracks changes based on the change in the individual stock's price per share.

Price-weighted index
An index giving a greater influence to higher-valued stocks by weighting all component stocks by their price.
Prices (of equity) ...

A price-weighted index, such as the Dow Jones Industrial Average (DJIA), counts changes in the prices of high-priced securities more than changes in the prices of low-priced securities.

A former price-weighted index that represented Germany's top traded 100 stocks. DAX is an abbreviation for Deutscher Aktienindex. The DAX 100 was formed using the 30 DAX equities and the 70 MDAX equities listed on the Frankfurt Stock Exchange.

Denominator in price-weighted indexes to adjust for security changes such as stock splits.
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Denominator in price-weighted indexes to adjust for changes such as stock splits.
Doctrine of sovereign immunity
Principle that a nation may not be tried in another country without its consent.

DAX 100 This is the price-weighted index of the one-hundred most heavily traded stocks in the German exchange., day loan A loan that a broker obtains in order purchase securities whose delivery pends...

share price index See price-weighted index. shareholder The owner of one or more shares of stock in a corporation or one or more shares or units of a mutual fund.

DAX 100 is the abbreviation for Deutscher Aktienindex 100, a German price-weighted index of that country's top 100 stocks. The DAX 100 includes names such as Bayer, Commerzbank, BMW, and Schering.

In a price-weighted index such as the Dow Jones Industrial Average, the price of each component stock is the only consideration when determining the value of the index.

Though it is called an average, it is actually a price-weighted index. That means the gains and losses of the highest priced stocks are counted more heavily than gains and losses of lower priced stocks.The DJIA is quoted in points, not dollars.

The Nikkei 225 is published by the Nihon Keizai Shimbun newspaper and like the Dow-Jones Industrial Average, on which it was modelled, it is a price-weighted index.

Nikkei Dow Jones Stock Average until it was renamed in May 1985, it is similar to the Dow Jones Industrial Average because it is composed of representative blue chip companies (termed first-section companies in Japan) and is a price-weighted index .

The Nikkei Stock Average, sometimes call the Nikkei Index or simply the Nikkei, is a price-weighted index of 225 blue chip stocks traded on the Tokyo Stock Exchange.

Divisor
Denominator in price-weighted indexes to adjust for security changes such as stock splits.

Both are composed of representative blue chip corporations (called "first-section" companies in Japan) and are price-weighted indexes--the movement of each stock is weighted equally regardless of its market capitalization.

The Dow is computed using a price-weighted indexing system, rather than the more common market cap-weighted indexing system. Simply put, the editors at WSJ add up the prices of all the stocks and then divide by the number of stocks in the index.

A relationship espoused by some technical analysts that signals continuing rises or falls in security prices that are related to changes in volume traded.
Price-weighted index ...

although the S&P500 Index and the Dow Jones Industrial Average may show similar performance for the US stock market, the former is a capitalization-weighted, broad market index comprising 500 constituents, while the latter is a price-weighted index ...

are normally 'weighted-average', whereby larger companies account for a greater portion of the index. Examples include the S&P 500 Index and the BSX Domestic Issuers Index. The alternative to weighting by market cap is a price-weighted index such ...

See also: Expense, Banks, Stock split, Debt security, Splits

Business Price-earnings ratioPricing efficiency

 
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