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
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Equal Weight
A type of weighting that gives the same weight, or importance, ... 
Weighted Average Market Capitalization
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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 ...

Investing
Weighted Average Cost Of Capital (WACC)
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Professionals
Computing Indexes
CFA Level 1  Computing Indexes. Learn how indexes are computed under various weighting schemes. Includes sample returns for price, market weighted and unweighted schemes. 
Mutual Funds & ETFs
Index Investing: What Is An Index?
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Active Trading Fundamentals
Weighted Moving Averages: The Basics
We take a closer look at the linearly weighted moving average and the exponentially smoothed moving average. 
Trading Strategies
Technical Analysis: Moving Averages
By Cory Janssen, Chad Langager and Casey MurphyMost chart patterns show a lot of variation in price movement. This can make it difficult for traders to get an idea of a security's overall trend. ... 
Investing
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 ... 
Forex
The Consumer Price Index
Find out how this economic measure can help you make key financial decisions. 
Investing
Weighted Average
Learn how to weigh the relative importances of data points in a calculated average. 
Professionals
Characteristics of Security Indexes
CFA Level 1  Characteristics of Security Indexes. Learn the characteristics behind security indexes. Examine three weighting schemes, including the formulas and biases for each. 
Mutual Funds & ETFs
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.

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