How Is the Value of the Stock Index Calculated?

Recap – What is a stock index?

A stock index is a statistical indicator that measures the combined value of a number of underlying stock prices. As stock indices are usually formed by a group of leading stocks in a market, they represent the overall health of an economy as well as the value of the stocks.

Although a stock index is not a tradeable product, but the rise and fall of its value can be traded on.

Methods for determining stock index prices

The price of each stock represented in a stock index affects the overall value of the index. However, there are different methods for determining how much weight each stock should be allocated. These include:

• Price-weighting
• Capitalisation weighting/ market-value weighting
• Market-share weighting
• Fundamental weighting
• Float-adjusted weighting
• Equal weighting

Price-weighted stock indices

A price-weighted stock index is an index where the fraction that a stock makes up of an index is proportionate to the price of that stock. This means that a stock trading at $500 will make up 10 times more of the total index when compared to a stock trading at $50.

Price-weighted stock indices do not accurately reflect underlying market values, as the stock trading at $500 could be that of a small company, whereas the stock trading at $50 could be that of a large company. As the stock of the smaller company makes up 10 times more of the total value of the index than the larger company, a change in its price will have a larger impact on the value of the stock index than a change in the price of the larger company. Meanwhile, the combined market values will not change to the same degree as the price of the larger company has not changed.

Also, price-weighted indices need to be constantly adjusted, as the changing prices of stocks will affect their appropriate weight in the index.

Examples of price-weighted indices include the Amex Major Market Index, the Dow Jones Industrial Average and the NYSE ARCA Tech 100 Index.

Capitalisation-weighted stock indices

In contrast to price-weighted stock indices, a capitalisation-weighted/market-value weighted index factors in the size of the company as well as the share price. This means the impact of a company’s price change is proportional to its overall market value, or the share price multiplied by the number of shares outstanding.

Consequently, small changes in large companies will have a greater influence on the value of the stock index than larger changes in small companies.

Some examples of capitalisation-weighted indices include the Hang Seng Index, Kuala Lumpur Composite Index, NASDAQ Composite, NASDAQ-100, NYSE Composite and the Taiwan Capitalization Weighted Stock Index.

Market-share weighted indices

A stock index that is market-share weighted is similar to a capitalisation-weighted index, but a market-share weighted index measures the price of shares relative to the number of shares, as opposed to their total value.

Fundamentally-weighted stock indices

Fundamentally-weighted stock indices weight stock indices by one of many economic fundamental factors, or by a composite of several fundamental factors.

This method of weighting argues that fundamental factors, such as sales, earnings, book value, cash flow and dividends, are a more accurate measure of its value than the share price, which can fluctuate with investor sentiment. One of the benefits of trading on these indices is that they might average out sector-specific biases.

Fundamentally-weighted stock indices are often contrasted to capitalisation-weighted indices. As the method of capitalisation-weighted stock indices focuses on company size and share prices, capitalisation-weighted indices could overweight overvalued stocks while underweighting undervalued stocks, meaning investors can’t see the true value of a company, and that the index doesn’t provide a true representation of an economy. As fundamental weighting weights industries by fundamental factors, an over- or undervalued share value will not have as large an impact.

That being said, although there isn’t a perfect correlation between fundamentals and share prices, there is some correlation, as large changes in fundamentals can result in large share-price movements. This was evidenced in the global financial crisis, when both fundamentally-weighted and capitalisation-weighted indices plummeted.

Float-adjusted weighted stock indices

Traditionally, capitalisation-weighted stock indices have had full-weighting. Full-weighting means that all shares outstanding for each company are included. Recently, many capitalisation-weighted indices have shifted to float-adjusted weighting, which takes into account the proportion of shares a company has free floated.

Both the S&P 500 and S&P 100 indices are now float-weighted.

Equal-weighted stock indices

Equal-weighted stock indices assign each stock in an index the same weight, so a movement in the share price of all companies have the same impact on the index, regardless on the size or market-share of that company.

Website Indexed in Days – How to Get Your Site Indexed in Just Days by All the Search Engines

Some people have trouble getting their site indexed quickly by the search engines. There are a number of easy ways to make sure that your website does get indexed and quickly.

What is indexing?

It is the adding of a website or web page to the index of a search engine like Google, Bing, Yahoo! or Ask. The index of these is the collection of web pages that they have crawled and can return in a search result.

Obviously if you want to show up in search results to get free traffic it is crucial that you get as much of your site indexed.

Hypothetically search engines are happy to index a website within seconds if they see it as very important. So the key to getting indexed is making your site seem more important. There are a number of ways to do this.

Build high Page Rank backlinks

Backlinks are links from one website to another. They are seen as a vote for a website. The more votes a web page has the more important it is. Unfortunately backlinks are not made equal the more Page Rank they carry the more important the vote is to the search engines. Here are a couple of easy link build techniques:

Article marketing

Writing and submitting articles to article directories is a great way to build inbound links. This is because all article distribution sites allow you to place links at the bottom of your article to your website.

Write an eBook

Writing an eBook and giving it away for free is a fantastic way to build a profile for yourself as an expert in your field as well as build high quality backlinks. You can place as many backlinks as you want within the text of the eBook and then all you have to do is to get other sites to host it and make it available to their users. There are a number of eBook directories for free eBooks.

Video marketing

Much like article marketing, video marketing is creating videos and submitting them to the numerous video directories like YouTube. You can place a hyperlink at the start of the description of the video.

There are a couple of other ways you can make your website so that it will be indexed in days

Site architecture is very important. In general a three tier system is preferred in particular for small to medium sized websites. This entails only having any of your pages within two clicks of a button i.e. you could go from your homepage, to a second category, to any page on your website. This is ideal for a search engine robot who wants to be able to navigate a site easily. Another important part of site architecture is internal linking which is linking from one page of your site to another. The search engine robot wants to find its way around your site by following links so oblige it by placing links within the text, as well as in images and navigational bars. The use of breadcrumbs is another great way to break your site into easily accessible categories.

Create an XML sitemap, this a sitemap that is only available to the search engine. You can create one on any number of free tools. It is basically a list of all the pages you want indexed on your site and their importance. You submit the sitemap to the search engine from their webmaster section and they will prioritise their robot’s visits to your site. It will go to the high priority pages first making them the most likely to be indexed.

Don’t worry too much about indexing if you have high quality content and a website that complies with the search engine’s guidelines you will have most of your site’s pages indexed and showing up in the natural search results.

Using Glycemic Index Charts

Do you find it hard to take off that extra weight? Do you find yourself in constant confusion on which foods you should or should not eat? Does it feel like no matter what you do you just keep getting bigger? Or are there times when you do lose weight but gain it again as it were never gone? Don’t worry, you and millions out there suffer the same fate when it come to getting that gorgeous body and staying healthy and fit. But keep in mind that whatever you are doing maybe counter productive to your goals – that’s why it’s not working for you.

Eating is a past time for many. But having a great body does not mean letting go of this fabulous hobby. It’s a matter of eating the right kinds of food! So which ones to eat you might ask? Low glycemic food.

Glycemic index weight loss programs are suitable for almost any person wanting to get a better body. Through glycemic index research, scientists and fitness professionals have narrowed down the best foods to consume. You can get a free glycemic index chart and simply choose the foods that you want to eat. This helps you plan your meals properly and stay healthier in an easy and a hassle-free manner.

To use this free index chart, you simply refer to the list food and their glycemic value (it ranges from 0 to 100). The higher the number means it gets absorbed by the body faster. Furthermore, when glucose is rapidly absorbed by the body it raises the blood sugar level and that is what you want to avoid. The glycemic index research showed that foods with values lower than 55 is best for you. Those between 55 and 70 are relatively good while those that are 70 and above are somewhat risky choices.

Here a food trivia: a Snickers bar has lower index than a bagel! The peanuts (actually the proteins in it) in the bar lower the index number making it better to eat. So it’s not all suffering when you go on a glycemic index weight loss program. The trick is to lower the index of food by combining it with high protein ingredients. This way, it will be slowly absorbed by the body.

Going on a diet fad or some other health quick fixes will not do the trick for you – and it may even be dangerous to your health. Choose a simple and effective way of getting your desired body – use glycemic index as a guide.

SEO Tactics to Get Indexed, Get Ranked, and Get Traffic

No one can deny that you need traffic to your website in order to succeed online. The best kind of traffic is free traffic. Where’s the best place to get free traffic? Google and other search engines.

How Does Free Search Engine Traffic Work?

The process works in a way that you have experienced many times. You go to Google, enter in a word or phrase you want to research, and click one of the links that shows up. Well, the link you clicked on just sent free traffic to that website owner. What we need to figure out is how to get YOU free traffic.

Most people only click results from the first couple pages. In fact, the first page of results receives almost all the free traffic. Believe it or not, the first 3 results receive over 70% of the traffic.

So to get any significant amount of free traffic from Google, you really need to be on the first page. This means Google needs to “rank” you as a top 10 result. This bring us to…

What Is SEO?

Search Engine Optimization is a measure of how well Google and other search engines think your website matches the search terms people are typing into their search boxes. It’s a complex formula that only people working for Google know exactly. There are several factors that we do know.

Getting Indexed

Before your website can begin gaining ranking, you have to alert Google to it’s existence. This is known as being “indexed.” When your website gets indexed, Google stores information about it in their massive database.

In order to get indexed, Google has to be able to find you. Links from other sites are the easiest way to accomplish this. Google will actually follow the links on sites it already has indexed to find new sites and index them.

Use your Twitter and Facebook updates to get quick indexed links to your site. These sites are indexed multiple times every day so your new link will get indexed very quickly.

Gaining Ranking

After this first hurdle, you need to start gaining ranking. Due to the massive size of the Google database – literally billions of pages – just getting indexed doesn’t do much for you.

Here’s what’s important in ranking:

 

  • Content
  • Links
  • Activity

 

Optimized Content

This is the SEO work you do on your page. It’s critical that your page content is consistent with the keyword phrases you’re targeting. Clearly this article is about search engine optimization. Google knows that not just because the words search engine optimization show up. Another way this is determined is by the other related phrases like traffic generation that are also in the article.

You also need to make sure the title tags, outbound links and the domain itself match the topic of the page. These all play a part in helping Google determine what your website is about.

Your Links

Next, you need to pay attention to the links to and from your site. The links to your site, as well as the sites you link to are important. You want to make sure you have more inbound links than outbound links. And the more inbound links the better.

Article marketing is a super easy way to get a bunch of inbound links. To accomplish this you start by writing an article that targets the keywords you’re after. Then you continue to create articles around these and other related keywords for ever increasing back-links. The more quality articles you write, the more links you’ll get back.

Make Your Site Active

Lastly, it’s seems clear that Google expects important pages to be actively updated. Static pages that just sit may rank at first, but will fall off over time, so you need to update your pages often. RSS feeds are an easy way to keep your content changing.

Another great way to keep your page content fresh is to enable comments on it and allow others to discuss your page topic. This means you need to get real live people to your site, as well. An easy way to do this is from forums.

Set up forum profiles with the ones related to your website and post there often. Put a link to your site in your profile. This gets you inbound links and it will also get real visitors to your site.

Conclusion

It’s important that you do everything listed here. But let’s face it, writing article after article, creating a bunch of forum profiles, and posting your articles and comments takes a lot of time which means you probably will end up NOT doing it.

Fortunately, you can get rank builder software to do all the grunt work for you. The best thing you can do is to automate this process. Otherwise, you won’t do it at all. And if you don’t do it, you simply will not ever get free traffic from Google.

Criminal Informants

Criminal informants, usually called “confidential informants” which is an oxymoron if I have ever heard one are glorified criminals. How can the criminal justice system justify a means to an end by giving criminals the opportunity to commit more crimes and the credibility to accuse other people of crimes? It would appear that a criminal will subject himself and others to danger, deceit and even death in order to commit a crime. When an informant is put on the street to carry out a job for the Justice system, does he suddenly become less dangerous and less deceitful?

Deceit is a major characteristic of criminals and is detestable in the eyes of the law, however; the system allows informants to deceive people in order to obtain information that will lead to an arrest. This can be compared to teaching your children not to hit people, however, you as the authoritative figure slap your child because the child hit his sister. This teaches the child nothing, actually; this confuses the child. This calls for a little “practice what you preach.” The informant is punished for “doing a thing” that you are now praising him for. Where is the consistency?

Confidential informants are supposed to be protected by the law. They are protected because if a defendant learns who the informant is; he may want revenge. By the same token, a detective will burn a confidential informant when he is not needed any longer. There is absolutely no consistency using the informant tactic to obtain information that may lead to an arrest. This is a selfish and lazy police tactic.

We entrust law enforcement with our safety, with our lives, however; it is a huge mistake in thinking that we are safe when criminals who have not been reformed are allowed to walk the streets as menaces to society. There may be a handful of descent informants walking the streets but; a handful is not a high enough number to prove a police tactic to be effective. There is nothing effective about a criminal entrusted, credited and glorified to do a detective’s job when he is deceitful and a possible danger.

Does a means to an end include informants committing more crimes and hurting innocent people when they should be in rehabilitation? I do not think that this informant tactic has been taken into consideration thoroughly. It is not fair to society at large to let recidivists run rampant. As a citizen I have a right to say this. As a witness to an informant gone wrong; I have even more of a right to say this because I was able to see first hand, a crooked, maniacal informant at work.

This informant has committed more crimes in more crime categories than anyone I know. He has bragged about being an informant for years stating that the police department is on his payroll and that he has a detective in his pocket. He set up a family friend in front of my family member and the detectives dropped him off at my house while the person who was set up was arrested, booked and thrown in jail. This is a dangerous game.

The informant has been a family friend for approximately eleven years so I can safely say that I have seen him in action. Many people can attest to the facts that this informant is a drug addict; drug dealer who drives on a suspended license while drinking and drugging, robs people and has been arrested for violent crimes. Why is this menace allowed to walk the streets without rehabilitation?

This is not fair to the citizens of this country. In fact, this is a crime against society and if something is not done about this; we can look forward to many innocent people doing time for an informants crime. This already is a reality, however, this reality will get worse. You have to realize that this deception does not stop with the informant and detective. This is a game of deception within the system.

The game of deception within the system extends to attorneys and in fact other representatives have become questionable. I must inform you that an attorney asked me not to share this information. The attorney told me that if this type of information gets out and people know that there is foul play within the system people will panic and he said, “the public does not want to know that they are not safe.”

I am witness to three crooked cases and I have been extremely quite about them because I do not want to alarm the public. Today, you can search the web for anything you are curious about and I was curious about confidential informants so I did a search. I learned that the informant tactic is failing because too many informants are crooked and choose to lie about innocent people to law enforcement. According to some sources; this is becoming an epidemic and needs to be addressed. You should be informed that this is not just a problem with informants but with detectives as well.

According to one source in an article I read; police officers said that a man sold them drugs, however; this man that supposedly sold them drugs was in flight to Chicago at the time. This source also contends that in another case, a man approximately seventy pounds lighter and one foot shorter than the actual offender was blamed for a cocaine buy. In yet another case, a woman was picked out by using a sixth grade picture that was ten years old for selling drugs to a DEA agent (Kroll, 2008).

This same source states that Federal prosecutors did not see the signs. This is pathetic. I want to know that I trust with my life, and the lives of others, that authority figures KNOW the truth or close to it before they file charges against people (Kroll, 2008).

There are several websites available on the web for you to learn alarming information. I am not going to list them in this article. It will take an article of many pages to quote what I have found. There is a website called whosarat.com that you may be interested in reading. I have only pulled up the page and have not read the content yet and I am not suggesting you read it to find the rats. I recommend you read the content and conduct your own research in order for you to also realize that the crooked informant epidemic is a real epidemic.

We are the people and we have a right to protect ourselves and a right to say who we trust to protect us. We are all human and humans run the Criminal Justice System. As humans err, the administrators of justice do as well. Informants are criminals which makes them less than honest and always looking for a way out. It is our duty to investigate this crooked informant epidemic before it spreads world-wide and more innocent people do time for informant crimes.