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Financial terms in "Strategies"

1. Unsystematic Risk

2. trading strategy

3. do it yourself investing

4. geographic risk

5. growth at a reasonable price (GARP)

6. compound arbitrage

7. shortfall risk

8. Calculated Risk

9. risk tolerance

10. applied research

11. buying on margin

12. risk appetite

13. Chartered Financial Consultant

14. gamble

15. growth industry

16. regret theory

17. selling hedge

18. defensive stock

19. Cartel

20. top-down

21. comps

22. retracement levels

23. option strategy

24. weighted average cost of capital

25. diversification

26. stock market rating

27. ulcer index (UI)

28. market neutral

29. defensive open market operations

30. shorting

31. countertrend trading

32. capital growth strategy

33. WACC

34. tactics

35. cover on approach

36. tomorrow next trade

37. Harvard MBA Indicator

38. earnings multiplier

39. Win-Win

40. style investing

41. short call option

42. investment analysis

43. covered arbitrage

44. buy the dips

45. allocation

46. strategic planning

47. bull call spread

48. shorting against the box

49. buy a bounce

50. neutral hedge

51. Sell short

52. balanced investment strategy

53. Just-In-Time

54. married put and stock

55. contingent immunization

56. value investing

57. Monthly Investment Plan (MIP)

58. arbitrage house

59. divest

60. Research

61. constant ratio plan

62. micro-hedge

63. circle of competence

64. Dow dividend theory

65. martingale system

66. value averaging

67. gapping

68. qubitrage

69. forward-looking statements

70. information coefficient

71. Halloween Strategy

72. hurdle rate

73. Extrapolation

74. swing trade

75. ChFC

76. Exposure

77. short sell

78. one cancels other order

79. multiple arbitrage

80. Market Basket

81. bottom-up

82. Program Trading

83. risk discount

84. bull put spread

85. divestment

86. planning

87. Institutional Shareholder Services (ISS)

88. Value stock

89. conversion arbitrage

90. automatic reinvestment plan

91. macro-hedge

92. growth strategy

93. basket

94. cover

95. tactical asset allocation

96. investment style

97. time weighted average price

98. combination

99. investment planning

100. boomernomics

Note: Maximum 100 records reached. Please narrow your search.

Featured term of the day

Definition / Meaning of

Weighted Stock Index

Categories: Finance,

In weighted stock indexes, price changes in some stocks have a much greater impact than price changes in others in computing the direction of the overall index. By contrast, in an unweighted index, prices changes in all the stocks have an equal impact.A price weighted index, such as the dow jones industrial average (DJIA), is affected more by the changing prices of higher-priced securities than by changes in the prices of lower-priced securities. Similarly, a market capitalization weighted index, such as the nasdaq composite index, gives more weight to price changes in securities with the highest market values, calculated by multiplying the current price per share by the number of outstanding or floating shares. A capitalization weighted index may also be called a market value weighted index. The theory behind weighting is that price changes in the largest or most expensive securities have a greater impact on the overall economy than price changes in smaller-cap or less expensive stocks. However, some critics argue that strong market performance by the biggest or most expensive stocks can drive an index up, masking stagnant or even declining prices in large segments of the market, and providing a skewed view of the economy.

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