Arithmetic Index

Business / Taxes / Arithmetic Index: An arithmetic index gives equal weight to the percentage price change of each stock that's included in the index. In computing the index, the percentage changes of all the stocks are added, and the total is divided by the number of stocks. The percentage price changes of large companies aren't counted more heavily, as they are in a market-capitalization weighted index. An arithmetic index is a more accurate measure of total stock market performance than an index that stresses relatively few high-priced or large-company stocks. However, some analysts point out that it may also produce higher total return figures than other indexing methods. The best known arithmetic index in the US is the one computed by Value Line, Inc., which tracks the approximately 1,700 stocks the company analyzes regularly. Standard & Poor's also calculates an arithmetic version of the S&P 500 index.

Other Words for Index

Index Adjective Synonyms: mark, sign, clue, token, hint, pointer, indicator, indication, guide
Index Noun Synonyms: guide, directory, list, listing, table of contents, catalogue, key, thesaurus
MORE

Photo File Index Print

Entertainment / Photography / Photo File Index Print: Makes ordering reprints and enlargements easy. A small print shows a positive, 'thumbnail' version of every picture on an aps roll. Each thumbnail picture is numbered on the index print to match the f MORE

Price Index

Business / Agriculture / Price Index: Current price expressed as a proportion to the same price in an earlier time period, commonly called the base period. Monthly price indexes computed by the National Agricultural Statistics Service are MORE

Palmer Drought Index

Business / Agriculture / Palmer Drought Index: A measure of the severity of prolonged periods (months or years) of abnormal dryness or wetness over large regions, published periodically by the Joint Agricultural Weather Facility. The Palmer Index MORE

Links
Home
Glossary
Thesaurus