Indices for which the weight assigned to each security depends on the security’s market capitalisation—that is, the market price of the security multiplied by the number of units outstanding of the security. Also called cap-weighted, market-weighted, or value-weighted indices.

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1. Indices for which the weight assigned to each security depends on the security’s market capitalisation—that is, the market price of the security multiplied by the number of units outstanding of the security. Also called cap-weighted, market-weighted, or value-weighted indices.