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.

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Definition / Meaning of

Fall

Categories: Banking,

nouna sudden reduction or loss of value Examplesa fall in the exchange rate • a fall in the price of gold • a fall on the stock exchange • Profits showed a 10 per cent fall.verbto be reduced suddenly to a lower price or value ExamplesShares fell on the market today. • Gold shares fell 10 per cent or fell 45 cents on the stock exchange. • The price of gold fell for the second day running. • The pound fell against the euro.to happen or to take place ExampleThe public holiday falls on a Tuesday.Usagepayments which fall duepayments which are now due to be made"...market analysts described the falls in the second half of last week as a technical correction to the market" [Australian Financial Review]"...for the first time since mortgage rates began falling in March a financial institution has raised charges on homeowner loans" [Globe and Mail (Toronto)]"...interest rates were still falling as late as June, and underlying inflation remains below the government's target of 2.5 per cent" [financial times]

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Broad-base Index

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Fall

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