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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 MatchesRecapitalization proposalRecapitalization proposalOften used in risk arbitrage. Plan by a target company to restructure its capitalization (debt and equity) in a way to ward off a hostile or potential suitor. Total capitalizationTotal capitalizationThe total long-term debt and all types of equity of a company that constitutes its capital structure. Capitalization rateCapitalization rateThe rate of interest used to calculate the present value of a number of future payments. Small 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. Further SuggestionsNasdaq small capitalization companiesSmall capitalization (small cap) stocks Capitalization ratios Overcapitalization Capitalization table Leveraged recapitalization |
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