DEFINITION of 'Taiwan Stock Exhange Corporation (TSEC) Weighted Index'
A stock market index comprised of companies traded on the Taiwan Stock Exchange (TWSE). The TSEC weighted index is made up of all the stocks in the Taiwan Stock Exchange and each is given a weight based on its market capitalization. Preferred shares, "full delivery" shares, and shares listed for less than a month are excluded from the index.
Also known as the "TAIEX".
BREAKING DOWN 'Taiwan Stock Exhange Corporation (TSEC) Weighted Index'
The TSEC weighted index is a weighted average, meaning that stocks with a higher market capitalization exert a greater influence on the overall index. The TSEC weighted index has a base value of 100 based on in its 1966 level and, similar to other indexes around the world, is occasionally reconstituted with different stocks. Much like the NYSE Composite Index, the TSEC weighted index provides a barometer of overall market performance.