AMEX Composite Index (XAX)

QUOTE AND NEWS
Investing School  Feb 23  Comment 
The NYSE AMEX Composite Index is a stock market index which utilized as a method to measure a portion of the stock market. It is an index that is employed by many news and financial services firms as a barometer or benchmark to calculate the...




 
TOP CONTRIBUTORS


The AMEX composite index is a capitalization weighted index that maps all the stocks, ADRs, Closed End investment vehicles. REITs and limited partnerships listed on the American Stock Exchange[1]. AMEX Composite was started by the exchange on December 29th 1995 with a base value of 550[2], the value, to which all subsequent index values are based on.

Weighting and Calculations

The AMEX Composite is a market value weighted index, that means the day-to-day price change in each issue is weighted by its market value (as of the start of the day) as a percent of the total market value for all components. Thus, the price change for each constituent stock affects the day's change in the index in proportion to the company's market value. The basic formula for any index is (be it capitalization weighted or any other stock index)[3]:

  • Index level= Σ(Price of stock* Number of shares)/ Index Divisor.

The Portfolio is divided by the Index divisor, in order to scale the value of the index to a more manageable number. Moreover, the level of the AMEX Composite is not altered by stock splits, stock dividends or trading halts, nor is it affected by new listings, additional issuances, delistings, or suspensions[4].

References

  1. AMEX Index description
  2. AMEX Index Facts
  3. Capitalization method methodology
  4. AMEX Index description
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki