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Financial terms starting with "E"
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Definition / Meaning of
Broad-base Index
Categories: Stocks,
An index whose purpose is to reveal the performance of the entire market, such as the s&p 500, Wilshire 5000, AMEX Major market index or value line composite index. Different broad-base indices have different approaches to ensuring that the index captures the entire breadth of market activity. The Wilshire 5000 takes the most all-inclusive approach by including all the stocks listed on the new york stock exchange and almost all the stocks listed on the NASDAQ and american stock exchange. The s&p 500 includes 500 companies that are together considered a good indicator for the US stock market, based on the industries the companies operate in, their positions within the industry, and their market capitalizations. The s&p 500 is a market-weighted index, so only 10% if its components make up about 75% of its value. The value line composite index takes an in between approach by tracking 1700 issues. The Value Line Composite is thought to be a better indicator of speculative stocks than of more stable stocks.
Most popular terms
1. Principal Register2. Management Liability Insurance
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5. Floating Rate
6. Corridor Self-insured Retention
7. Hybrid Mortgage
8. Opt-out Lawsuits
9. Community Reinvestment Act Of 1977
10. Additional Insured
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