What is 'Weighted'
A mathematical process by which figures and/or components are adjusted to reflect importance by value or proportion. A weighted average, for example, takes into account the proportional relevance of each component, instead of measuring each individual component equally. For example, the Dow Jones Industrial Average (DJIA) is a priceweighted average that compares each security based on the stock's price relative to the sum of all the stocks' prices. The Nasdaq, on the other hand, is a market capitalization weighted index, where each company is measured relative to its market value.
Where the DJIA and Nasdaq indexes utilize weighting in their calculation to more closely approximate the effect that changing stock prices will have on the overall market, weighting can also be used to help evaluate the past and current prices of individual instruments through technical analysis.
BREAKING DOWN 'Weighted'
Emphasis can be placed on the more pertinent data through weighting; this method is used frequently in the investing and accounting world. A weighted moving average, for example, places additional emphasis on the most recent data, thereby providing a better view of current market activity. Similarly, a weighted alpha measures how much a stock has risen or fallen over a certain period, placing more emphasis on recent activity. Since more focus is placed on the current period, the calculation provides a more relevant measure for shortterm analysis. Other weighted metrics include weighted average cost of capital, weighted average coupon, and time weighted average annual rate of return.

Weighted Average
An average in which each quantity to be averaged is assigned ... 
Weighted Alpha
A weighted measure of how much a stock has risen or fallen over ... 
Weighted Average Market Capitalization
A stock market index weighted by the market capitalization of ... 
Equal Weight
A type of weighting that gives the same weight, or importance, ... 
Portfolio Weight
The percentage composition of a particular holding in a portfolio. ... 
Weighted Average Credit Rating
The weighted average of all the bond credit ratings in a bond ...

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. 
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. 
Trading
Weighted Moving Averages: The Basics
We take a closer look at the linearly weighted moving average and the exponentially smoothed moving average. 
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 ... 
ETFs & Mutual Funds
Smart Beta vs. Active Management: Which is Better? (BLK, SCHB)
Learn how smart beta funds combine the advantages of both active and passive management by tracking customized indexes without capitalization weighting. 
Trading
The Consumer Price Index
Find out how this economic measure can help you make key financial decisions. 
ETFs & Mutual Funds
Strategies For Determining The Market's True Worth
Learn the strengths and weaknesses of passive and active management when trying to uncover the overall market's worth. 
ETFs & Mutual Funds
The Top 3 ETFs to Track the Dow Jones Industrial Average for 2016
Learn about exchangetraded funds that track the Dow Jones Industrial Average. Read how compounding impacts the results of inverse and leveraged ETFs. 
ETFs & Mutual Funds
Introduction To Fundamentally Weighted Index Investing
If you believe the market smiles on those who focus on value, growth or income, this vehicle may be for you. 
Markets
The Weighted Average Of Outstanding Shares
The quantity of a company’s outstanding shares changes when it issues new shares, repurchases or retires existing ones, or converts others.

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 >> 
How do you calculate the proper weights of different costs of capital?
Understand how to calculate the weights of the difference costs of capital and how this calculation is used to determine ... Read Answer >> 
What is the difference between Exponential Moving Average (EMA) and Weighted Moving ...
Read about the difference between exponential moving averages and weighted moving averages, two smoothing indicators that ... Read Answer >> 
What is a common strategy traders implement when using the Weighted Alpha?
Learn how traders and investors use weighted alpha to identify momentum of a stock's price and whether prices will move higher ... Read Answer >> 
What are the best technical indicators to complement Weighted Alpha?
Find out how technical analysts and traders use a stock's weighted alpha to confirm momentum or select specific stocks to ... Read Answer >> 
How do I use Excel to calculate a weighted average?
Learn about the calculation and interpretation of weighted averages, including how to compute a weighted average using Microsoft ... Read Answer >>