Broad-Based Index
An index designed to reflect the movement of the entire market. The smallest broad-based index is the Dow Jones Industrial Average with 30 industrial stocks and the largest is the Wilshire 5000 Total Market Index. Other examples include the S&P 500, Russell 3000 Index, AMEX Major Market Index and the Value Line Composite Index. Investopedia Says:
Investors who want the maximum benefit of diversification can invest in securities that have as their underlying tracking instrument an index or other financial product made up of several, well-diversified stocks. Securities based on broad-based indices allow investors to effectively own the same basket of stocks contained in a major index while committing a small amount of financial resources. Related Terms:
Diamonds
Dow Jones Industrial Average - DJIA
Index
Index Fund
iShares
Russell 2000 Index
Spiders - SPDRs
Standard and Poor's 500 Index - S&P 500
Value Line Index
Wilshire 5000 Total Market Index - TMWX |