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What is the weight of the Nikkei 225 index and what is the importance of it to FintechZoom readers?
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Fintechzoom.Com Nikkei 225 Today is a price weight index, which implies that firms whose share price was high have greater control on the index than firms with low share price irrespective of the market capitalization. This is unlike other market-cap weighted indices such as the S&P 500. To FintechZoom readers, it is crucial as it defines why one high-priced stock can move the index higher than a very large firm with a lower share price. The knowledge of this type of weighting will allow investors to read the reports of FintechZoom on the Nikkei 225 Today with more context and not to assess the overall state of the market.
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