A price-weighted average is a simple mathematical average of several stock prices, and is often used to construct a price-weighted index. Perhaps the most well-known stock index in the U.S., the Dow ...
Despite being the most valuable company in the world, Nvidia has a weight of just 2.1% of the Dow Jones Industrial Average. The reason why Nvidia accounts for such a small piece of the Dow's ...
The Dow Jones Industrial Average remains a respected benchmark, but its price-weighted construction makes it suboptimal for many investors' portfolios. Recent events, like UnitedHealth's sharp decline ...