Market-Value Weighted Index
A type of stock index, in which stocks are weighted relative to their market value (market capitalization).
Value of Market –Value Weighted Index is calculated by summing up whole market value of stocks in the index and dividing the aggregate with the number of stocks in the index.
Market-Value Weighted Index is also known as Capitalization Index.
Most common Capitalization indexes are S&P 500, EAFE Index, Wilshire 500 Equity Index and NASDAQ Composite Index.
| Related Terms: NASDAQ Composite Index NYSE Composite Index |