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Investments glossary

Unweighted Index


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Quotes of the day:

Everyone got caught up in the debate of deflation, Greece and the Ukraine crisis and so expectations were quite low, it now seems the deflation story is a positive one for the euro zone since cheaper oil means consumers spend less on energy and have more money in their purse.

— Christian Schulz

An unweighted index is comprised of securities with equal weight within the index. An equivalent dollar amount is invested in each of the index components. For an unweighted stock index, one stock’s performance will not have a dramatic effect on the performance of the index as a whole.


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