Taiwan Stock Exhange Corporation (TSEC) Weighted Index

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.

RELATED TERMS
  1. Taiwan OTC Exchange (TWO) .TWO ...

    The Taiwan OTC Exchange (TWO) is an alternative securities exchange ...
  2. Weighted Average Market Capitalization

    A stock market index weighted by the market capitalization of ...
  3. Full Delivery Shares

    A rating given to the stock of a company traded on the Taiwan ...
  4. Taiwan Stock Exchange (TAI) .TW

    The securities trading center in Taiwan. The Taiwan Stock Exchange ...
  5. Equal Weight

    A type of weighting that gives the same weight, or importance, ...
  6. Price-Weighted Index

    A stock index in which each stock influences the index in proportion ...
Related Articles
  1. ETFs & Mutual Funds

    S&P 500 ETFs: Market Weight Vs. Equal Weight

    Both indexes include the same stocks, but their weightings give them very different properties.
  2. ETFs & Mutual Funds

    3 Types Of Indexing For ETF Success

    ETF success relies on the index with which it's paired. Discover three index genres for tracking average market performance.
  3. ETFs & Mutual Funds

    (EWT, FTW, QTWN) 3 Best Taiwan ETFs for 2016

    Examine detailed analysis of three exchange-traded funds that track the Taiwan equity market, and learn about the characteristics and suitability of these ETFs.
  4. ETFs & Mutual Funds

    EWT: iShares MSCI Taiwan ETF

    Take a look at the largest Taiwan ETF: BlackRock's iShares MSCI Taiwan. Learn how investors can best apply EWT to their overall portfolio.
  5. Markets

    How China and Taiwan Each Operate Economies As The One True China

    Taiwan grapples with diplomatic isolation while issues regarding its status remain unresolved and so does the question of its unification with China, if ever.
  6. Markets

    Understanding Capitalization-Weighted Indexes

    A capitalization-weighted index is a market index whose individual components are weighted according to their market capitalization.
  7. Investing

    What's a Market Index?

    A market index combines several stocks to create one aggregate value that’s used to measure a market’s or sector’s performance.
  8. Markets

    Top Reasons Stock Indices Could Be Biased

    Do the owners of the large stock indices (McGraw Hill Financial, CME Group, and News Corp) have incentive to pick stocks to put in the index that are "shiny" as a marketing ploy? And if so, wouldn't ...
  9. ETFs & Mutual Funds

    The Pros and Cons of Indexes

    Learn about the advantages and disadvantages of stock indexes and passive index funds. Discover how there is an opportunity cost to using index funds.
  10. ETFs & Mutual Funds

    An Introduction To Stock Market Indices

    Investopedia explains the five most talked about indices and what makes them all different.
RELATED FAQS
  1. What are the most common market indicators to follow the Chinese stock market and ...

    Learn the most commonly followed market and economic indicators used by market analysts to track the Chinese stock market ... Read Answer >>
  2. How is the value of the S&P 500 calculated?

    The S&P 500 is a U.S. market index that gives investors an idea of the overall movement in the U.S. equity market. The value ... Read Answer >>
  3. What does the S&P 500 index measure and how is it calculated?

    Learn about what exactly the S&P measures and why it's used by market participants as a tool to understand the broader stock ... Read Answer >>
  4. What is a capitalization-weighted index?

    Learn about a capitalization-weighted index and how to calculate the value of a capitalization-weighted index through a simple ... Read Answer >>
  5. What are the most common market indicators to follow the U.S stock market and economy?

    Understand some of the key indicators analysts use to follow the U.S. stock markets and to assess the overall condition of ... Read Answer >>
  6. What is the difference between weighted average shares outstanding and basic weighted ...

    Outstanding shares refers to stock that is currently held by investors, including shares held by the public, and restricted ... Read Answer >>
Hot Definitions
  1. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  2. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  3. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  4. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  5. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  6. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
Trading Center