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Capitalization Weighted Index |
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Capitalization Weighted IndexA stock index which is computed by adding the capitalization (float times price) of each individual stock in the index, and then dividing by the divisor. The stocks with the largest market values have the heavist weighting in the index. See also Float, Divisor.Capitalization Weighted Index Similar MatchesSmall capitalization (small cap) fundSmall capitalization (small cap) fundA mutual fund that invests primarily in mutual fund of companies whose market value is less than $1 billion. Small-cap stocks historically have been more volatile than large-cap stocks, and often perform differently from the overall market. Capitalization methodCapitalization methodA method of constructing a replicating portfolio in which the manager purchases a number of the most highly capitalized names in the stock index in proportion to their capitalization. OvercapitalizationOvercapitalizationSaid to occur when a firm cannot service its debt even though its deb../../finance-glossary/equity ratio is not excessive. Small capitalization (small cap) stocksSmall capitalization (small cap) stocksThe stocks of companies whose market value is less than $1 billion. Small-cap companies tend to grow faster than large-cap companies and typically use any stocks for expansion rather to pay dividends. They also are more volatile than large-cap companies, and have a higher failure rate. Capitalization rateCapitalization rateThe rate of interest used to calculate the present value of a number of future payments. Further SuggestionsCapitalization tableCapitalization ratios Total capitalization Leveraged recapitalization Recapitalization proposal Nasdaq small capitalization companies |
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