Below is a glossary of terms that are used in the online trading industry. Select the first letter of the word you are seeking from the list above to jump to the appropriate section of the glossary.
Equally Weighted Index
An index calculated by averaging the percentage change of each of the listed stocks included in the group, regardless of their market cap or economic size (i.e. sales and earnings). In this sense, it is different from a cap-weighted index, in which stocks are weighted on a daily basis according to their total market value. Most of the widely used indices such as the S&P 500 offer equal weight versions in addition to their cap-weighed indices.