Introduction to Indices

In introduction of price weighted, value weighted and equally weighted indices. This is a general overview of the how they are constructed, the implications of each approach, and which is the best.

[@sumthingelse19]

Once again, learned more from a RUclips video than I have the whole semester in College.

[@lordvenom3938]

Lol i am studying this after graduation. Just to know

[@ngambokalongo8434]

Recommend some other video or tutors

[@vedantsgoodlife7302]

very well explained, thanks Kevin for sharing your knowledge

[@pynklion]

wow 10 years later. Thanks for the video! Now I know why they back test the methods to see if they are giving the true account.

[@ronnietheratt]

Great video, please continue to upload stuff like this you've basically saved my Investments class grade.

[@ashishlkhr]

Hey Kevin,
Thanks for your valuable videos. They are really helpful for clearing concepts!

[@feverpitch82]

thank you for this video! Now its completely clear.

[@__-oq6nb]

These are great. thanks for the awesome videos.

[@greeksta59]

THIS IS SOOO HELPFUL!! THANK U SO MUCH BRO!

[@gokzee]

Very Informative!! Thanks

[@fatennassar136]

thanks for the amazing explanation !!

[@nekrawesh]

Wonderful explanation! Thank you so much

[@junyingsitu2549]

Thank you for sharing! This video helps!

[@gvott1]

You are awesome,

[@florzinha_g.]

This is GOLD

[@Beautiralla]

i could write an essay after seeing this...thank alot....i perfectly understand the whole index thing

[@josephmonile39]

Excellent video

[@romerluis]

Good video, thanks.

[@Chris08160]

Very good!

[@ChineloSophiaEzenwa]

this is great!!Paper works

[@olliemoore11]

great vid.

[@pebs3637]

Thank you very much for your kind explanation. I have some question. I read through a paper work on idiosyncratic volatility and one section mentioned "the market factor for country j is computed as the value weighted excess return of the local market portfolio over the one month U.S. T bill rate" I am sorry to bother you but do have any idea what does value weighted excess return should be computed.sorry for my poor Englishthank you in advancefrom Thailand

[@abdulazizalmutairi7439]

super helpful

[@kevinbracker]

Unfortunately, I'm not sure exactly what the Portfolio Index you mention refers to.

[@sukhghotra8222]

Thanks very much

[@thevineyard7149]

Thanks

[@kevinbracker]

The DJIA is not the 30 biggest stocks (for example, neither Google or Apple are in there despite being in the top-30 market cap). Also, there is a big difference between market cap being part of the criteria and it being a way to weight the index. If Apple and Exxon were in a market-cap weighted index they would have similar weightings. In a price-weighted index like the Dow, Apple would have about 6 times the impact on the index.

[@johnjarrett311]

Do stock splits actually automatically reduce the price of the stocks? If they increased the number of shares 1000:1, wouldn’t they automatically make that much more money once the stocks were bought? At least that is what I understood from Khan Academy’s video on stock dilution.

[@mariettavillarey]

Hi Kevin, I have a project at school where I need to calculate Portfolio Index. I have Googled and looked at your video but can't find any showing calculation of portfolio index.
Please help.
thanks

[@kelvindanford397]

thanks

[@sukhghotra8222]

How to calculate points of index for example all the time we hear market drop of 200 points and some time gaine 300 point

[@sukhghotra8222]

Such a great knowledge ty 👍👍👍

[@CarlosRivera90]

What happens when stocks split?

[@commodore7838]

Carlos Rivera doesnt change anything because the price splits proportionally i think

[@kevinbracker]

I missed this when the original question came up. However, stock splits are not an issue with value-weighted or equally-weighted indices. With price-weighted indices, it is necessary to change the divisor to account for the stock split and the weightings of each stock will change as relative prices are now different.

[@venezuelso]

I am first

[@jensenliu7985]

邵琦你懂了吧

[@zixshao6972]

我懂了哥