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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 MatchesCapitalization 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. Nasdaq small capitalization companiesNasdaq small capitalization companiesA group of 2000 companies with relatively small capitalization, which are listed separately and have at least two market makers. Recapitalization 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. 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. Further SuggestionsCapitalization ratiosCapitalization rate Total capitalization Small capitalization (small cap) fund Leveraged recapitalization Capitalization table |
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