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Topic: Price-weighted


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In the News (Wed 30 Dec 09)

  
 Australian Parliamentary Library - 1995-96 Background Paper 11
Price indexes were devised to calculate inflation rates for the general level of prices by combining numbers of items into a single measure.
Firstly, the index for prices paid is an indicator of the general level of farm inflation, the same way that the CPI reflects the general level of inflation for capital city households.
A constant price estimate is a current price estimate revalued using the prices of a base period.
www.aph.gov.au /library/pubs/bp/1995-96/96bp11.htm

  
 * Dow Jones Industrial Average - (Stock Market): Definition
Price performance of a stock or group of stocks compared to a given norm, such as the Standard and Poor's 500 or the Dow Jones industrial average.
It refers to a weighted average of 30 widely-traded blue chip stocks (such as IBM and Coca-Cola)...
It refers to a weighted average of 30 widely-traded (such as IBM and Coca-Cola)...
en.mimi.hu /stockmarket/dow_jones_industrial_average.html

  
 Decision Point ®: Unweighted Market Indexes
Unfortunately, using them to analyze their cap-weighted price indexes is not always effective because the movement of the price index is determined by the weight of a just a few stocks.
This means that the daily impact of a stock's price change upon a given market index is weighted by multiplying its price by the number of shares outstanding.
Alternatives to arithmetic averaging require the use of logarithms or "price relatives" in order to account for the previous performance of an individual stock, which in effect causes the resulting index to become price-weighted.
www.decisionpoint.com /tacourse/Unweighted.html

  
 Frontiers of Entrepreneurship Research 1995
The index is a weighted sum of the estimated prices of the individual stocks.
However, the ratios of prices in successive financings of a company did not appear to vary on the average between those that had new investors in both transactions and all other cases (a new investor in the first only, a new investor in the second only, or missing information regarding new investors).
All indices assume that the observed stock prices are "market prices" and that such market prices are available for all members of the index.
www.babson.edu /entrep/fer/papers95/keeley.htm

  
 Paris Partners
The Weighted Average Hourly Spot Price (WAHSP) is the Spot Market Price weighted by the NSLS on an hourly basis throughout the day, giving an average price for each unit of the NSLS sold that day.
The Spot Market Price is the hourly weighted average of the Market Clearing Price.
Weighted Average Hourly Spot Price = Sum of NSL Revenue ($) / Sum of NSL Quantities (kWh)
www.sentex.net /~ppartners/wahsp_calc.html

  
 CASS 10/16/98 Walnut/Raisin/Prune Report R:810wrprp
Weighted Average Price: Weighted average price reflects prices or "good faith" estimates of prices as reported by handlers, and include any bonuses or allowances.
The weighted average size count of tons purchased from producers was 67 for the French varieties and 36 for the non-French varieties.
This price is rounded to the nearest tenth of a cent per pound and includes all bonuses and allowances.
www.nass.usda.gov /ca/oth/810wrp.htm

  
 Wilmott Forums - price weighted Index Series - any advantage
Another reason price weighting made sense in the past is that stock had a closer relation to its par value.
So, you know that the stock with the highest price moves, it will affect the index mosts, because, say all stocks move up 1%, that means that a stock with a price of 1000 will affect the index much more (10/Divisor) than a stock with a price of 20 (0.2/Divisor).
Price weighting was invented when indices were computed by hand.
www.wilmott.com /messageview.cfm?catid=8&threadid=9474

  
 Path to Investing — Markets & Exchanges: Price-Weighted, Capitalization-Weighted & Equal-Weighted Indexes & Averages
In contrast, equal-weighted indexes and averages give equal emphasis to the price movements of all the stocks they measure, so the price change of every company in the index has the same impact on the changing value of the index.
For example, the DJIA is price weighted, as is Japan’s Nikkei 225.
Most stock indexes and averages are weighted, which means that some stocks in the index have a larger impact on the calculation than others because they are assigned a greater value.
www.siainvestor.com /categories/howmarketswork/marketsexch/marketsexch_065.htm

  
 Equal-Weighted Indexes
In equal-weighted indexes, all stocks receive the same weighting regardless of their size or share price.
A company's weight in an index is determined by its total market capitalization, or the share price multiplied by total shares outstanding.
There are three common systems for determining a stock's weight in an index: market-capitalization weighting, price weighting, and equal weighting.
www.indexfunds.com /articles/20020909_indexweight_iss_veh_JS.htm

  
 401khelpcenter.com - Glossary of 401k, Retirement, and Investment Terms
The amount, expressed as a dollar value or as a percentage, by which the price of the convertible security exceeds the current market value of the common stock into which it may be converted.
When prices are lower, the investor buys more shares or units; when prices are higher, the investor purchases fewer shares or units.
The price a seller is willing to accept for the security; also called the offer price.
www.401khelpcenter.com /glossary.html

  
 Week2.ppt
For example, the weights may be determined by the price of the each stock in the index (price-weighted index), or by the market capitalization of the stock, or may be kept fixed.
Price weighted: DJIA The weight of each stock in the index depends on the price of the stock.
Therefore, the weight of GE in the S&P 500 is 406/10526=3.86%.
www-unix.oit.umass.edu /~nkapadia/FOMGT421/Week2.ppt

  
 Bloomberg.com: Financial Glossary
The price fixed by the clearinghouse at which deliveries on futures are invoiced; also the price at which the futures contract is settled when deliveries are made.
Contracts such as options and futures whose price is derived from the price of an underlying financial asset.
The quotation and trading of stock or bond prices in decimals, as opposed to the quotation of in fractions.
www.bloomberg.com /analysis/glossary/bfglosd.htm

  
 Index numbers
It is called a base weighted index because we use the quantities purchased in the base year (here 1990) to weight the unit prices in both years.
Its aim is to measure the change in price over time of a whole range of widely bought goods and services and so give a measurement of the cost of living.
They buy bottles of red and white wine (all at one price), 6-packs of beer also all at one price and litre bottles of soft drinks which are also priced the same as each other.
www.netcomuk.co.uk /~jenolive/sindexes.html

  
 Educate Yourself - B&H 101 - Understanding the Price-Weighted Dow Industrials
The price-weighted nature of the Dow differs from the S&P 500, which is a market-capitalization weighted index.
Since the Dow is a price-weighted index, a stock split (since it reduces the stock price) will reduce the stock's weighting in the Dow.
(A stock's market capitalization is the number of outstanding shares multiplied by the stock price.)
www.buyandhold.com /bh/en/education/carlson/2000/understanding_priceweighed.html

  
 Price-Weighted Index Portfolio
1) Record the initial price you paid per share for each of your stocks on a sheet of paper.
2) Add each share price together to create the total spent on 1 share of each stock.
6) Repeat this process for the most recent data available on your stock prices (For example Day 5).
projects.edtech.sandi.net /kroc/millionaire/price-weighted_index_portf.htm

  
 February 1992 Resource Newsletter
Prices for a number of fresh vegetables will be high and supplies will be short due to whitefly infestations in Southern California and reduced vegetable acreage in Florida and Mexico.
The wholesale price of flour is nearly 50 percent higher than a year ago--this increase is expected to work its way through the system and translate into higher prices on bakery products.
Higher priced foods with added services, such as restaurant meals and already prepared foods, will likely be sacrificed for less expensive and more basic foods, such as those prepared from scratch at home.
outreach.missouri.edu /hesnutrnews/fnr88-97/fnr92-2.htm

  
 Has the Dow Really Escaped the Bear?: Graziadio Business Report
Value-weighted indices are calculated from market capitalization (shares outstanding x stock price) weights, or simply the market value of a company's stock outstanding.
To create a price index for your portfolio, you would simply take one share of each company, add these, and divide by your divisor, which would be 30 in the absence of splits or substitutions.
This table provides a list of each of the current DJIA 30 industrial companies along with their relative weighting on the DJIA, which is a function of the recent share price on March 23.
gbr.pepperdine.edu /012/dow.html

  
 401Kafe.com
In the Dow Jones Industrial Average, by contrast, the 30 stocks comprising the index are weighted according to price.
Since there are 500 stocks in the index, its overall movement will be influenced more heavily by price changes in the stocks with the heaviest weightings (and largest market capitalization).
The higher the price, the heavier the stock's "weight".
www.infoplease.com /finance/tips/money/money_sandp.html

  
 Hardening weighted average price pushes raw cotton prices up 2.7% in April
New Delhi, June 4: Hardening of weighted average price of domestic raw cotton has come about in the last few months and witnessed 2.7 per cent rise for the latest recorded period April.
Hardening weighted average price pushes raw cotton prices up 2.7% in April
One major reason as to why the prices of Pakistan cotton continues to be favourably low in the international market is due to the fact that the their government procured cotton from the producers at fixed rate.
www.expressindia.com /fe/daily/20000605/fco05031.html

  
 Frequently Asked Questions - I notice that you continually add new indexes I can compare my funds to. Do you have descriptions of those indexes?
The index is the sum of the current market price of the 30 stocks divided by a number that has been adjusted to take into account stock splits and changes in stock composition.
The index is the sum of the current market price of the 300 stocks divided by a number that has been adjusted to take into account stock splits and changes in stock composition.
www.globefund.com /static/faq-charts-indexes.html

  
 Calculating The Dow Jones Industrial Average
To absorb the effects of price changes from splits, those calculating the DJIA developed the Dow divisor, a number adjusted to account for events like splits that is used as the divisor in the calculation of the average.
This change in price brings down the average even though there is no fundamental change in the stock.
To calculate the DJIA, the current prices of the 30 stocks that make up the index are added and then divided by the Dow divisor, which is constantly modified.
www.investopedia.com /articles/02/082702.asp

  
 Stock Indexes
In a price-weighted index, a change in the stock price of the largest company in the index would influence the average no more than an equal change in the stock price of the smallest company in the index.
While a one dollar price change in one stock in a simple stock price index will have the same effect as a one dollar change in any other stock, a given percentage increase of a higher price stock influences the index more than a corresponding percentage increase of a lower price stock.
To consider the size of a company, a market capitalization weighted index (or value-weighted index) can be used, in which a company's impact on the index is proportional to the size of the company.
www.quickmba.com /finance/invest/indices.shtml

  
 SA Monitor Help
If the index is capitalization-weighted, each stock in the index is weighted in proportion to its total market value (market price per share times outstanding shares) relative to the total market value of all issues in the index.
Value Equity Funds universe includes all equity funds where price is a major determinant of stock selection, and the investment focus is on the price:earnings ratio, price:book ratio, dividend yield, or asset value.
Value Equity Accounts universe includes equity accounts and composites of accounts where price is a major determinant of stock selection, and the focus is on the relative price/earnings ratio, price/book ratio, dividend yield, or asset value.
datalab.morningstar.com /epiper/Help.asp

  
 Volume Weighted Average Price
Interest in VWAP as an official industry benchmark price (outgrowth of research)
www.fisd.net /presentations/Zurich200/sld064.htm

  
 Read Story
The Eastern Cornbelt prices were weak with prices ranging 50.50-62.00, weighted average 59.63.
Steers: Live basis: Over 80% Choice 75.00, weighted average price 75.00; 65-80% Choice 75.00-75.50, weighted average price 75.09; 35-65% Choice 74.00-75.00, weighted average price 74.85.
Dress basis: Over 80% Choice 118.00-120.00 weighted average price 119.60; 65-80% Choice 118.00-121.00, weighted average price 119.64; 35-65% Choice 117.00-121.00, weighted average price 119.63; 0-35% Choice 119.00, weighted average price 119.00.
www.farms.com /readstory.cfm?dtnnewsid=552930

  
 Volume Weighted Average Price (VWAP) Orders
The VWAP for a stock is calculated by adding the dollars traded for every transaction in that stock ("price" x "number of shares traded") and dividing the total shares traded.
After the market closes, the VWAP order with the executing price is available via the Executions window.
A VWAP is computed from the open of the market to the market close, and is calculated by volume weighting all transactions during this time period.
www.interactivebrokers.com /html/tradingInfo/orders/vwapOrders.html

  
 AM_LS753.txt
Prices FOB based on net weights after a 2-3 percent pencil shrink or equivalent, with a 3-6 cent slide on yearlings and 4-10 on calves.
Supply includes 40 percent feeder steers and heifers over 600 lbs, 64 percent of supply steers and 36 percent heifers.
www.ams.usda.gov /mnreports/AM_LS753.txt

  
 Volume Weighted Average Price
Moving average weighted by the volume of each bar.
All names mentioned in this document are trademarks or registered trademarks of their respective owners.
www.galacticinvestor.com /HELP40/INDICATORS/volumeweightedavgprice.htm

  
 Fool.com: Price-Weighted Index. (Foolish Four Report) June 30, 1998
That is, the stocks with the highest share prices are weighted the heaviest.
So the stock's exactly where it was, but because of its high price and stock split, it's boosted the index by about 100 points.
The Standard & Poor's 500 Index and the Nasdaq Composite are market-cap weighted, meaning the stocks of the largest companies affect the indices the most.
www.aol.fool.com /ddow/1998/ddow980630.htm

  
 Index Descriptions
The day-to-day price change in each issue is weighted by its market value (as of the start of the day) as a percent of the total market value for all components.
The representation of each security in the Index is proportional to its last sale price times the total number of shares outstanding, relative to the total market value of the respective index.
However, the system makes a price adjustment to account for the increased number of shares with the result being that the current market value does not change.
www.nasdaq.com /reference/IndexDescriptions.stm

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