← Options Glossary A stock index which is computed by adding the capitalization (float times price) of each individual stock in the index, and then dividing by the divisor. The stocks with the largest market values have the heaviest weighting in the index. See also Float, Divisor.
Capitalization-Weighted Index
This is a definition, not a recommendation. Options carry risk and can expire worthless. See how the desk actually trades at TrueTrader.