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Financial Stocks/share price index

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Question
what does non-market capitalisation method of calculating share price index consist of?does it include price and equal weighted method?

Answer
Anabell,
  Thank you for your question! Yes, basically you are correct. Non market cap weighted index means that each company has equal impact on the index regardless of the size of the company. It is typically regarded as a far more simple way to calculate an index, but perhaps less accurate as a small micro cap company's share price has the same impact as a macro cap, giant company in the calculation of the overall index price.

I hope that helps, please reply if I can offer anything additional.

Sincerely,
Paul Henneman
President
ValuEngine Inc
www.ValuEngine.com

Financial Stocks

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Paul Henneman

Expertise

Stock forecasting and fair market valuations. I am happy to try to answer any questions for investors trying to manage their funds for the future. I will NOT ANSWER HOME WORK questions from students in finance or economics. Over half the questions I get are from students studying finance, located in India. Having someone on the internet answer your homework questions is not the way to build the knowledge you need for a career. All other questions are welcome and encouraged.

Experience

15 years in a leadership role at a Financial research company. Provide research to institutions on a high level such as Wells Fargo advisors, Fidelity, Bank of NY, Scotia Bank, Thomson Reuters, Bloomberg, McGraw Hill, and others.

Education/Credentials
Florida International University, University of Florida, over 20 years in the business.

Past/Present Clients
CBSMarketwatch.com, Hoovers.com, Multexinvestor.com, Bank of NY, numerous hedge funds and institutions, other partners and clients can be viewed at http://www.valuengine.com/about/careers.html

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