A market-capitalization weighted index is a stock index that requires each company to be weighted according to their total market capitalization in the index. To calculate the market capitalization value, we multiply the number of shares outstanding by the market price per share.
Some other related topics you might be interested to explore are Equal-weighted index, Price-weighted index, and Float-adjusted market-capitalization weighted index.
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Market-capitalization weighted index is among the topics included in the Portfolio Management module of the CFA Level 1 Curriculum.
