Value Line Composite Index
The Value Line Composite Average Index (VLA) (also abbreviated to Value Line Composite Index or Value Line Index ) is an overall index of share price movements that is calculated on the basis of equally weighted averages of almost 1680 listed shares that are traded on various stock exchanges in the United States becomes. The index is relevant to the New York Stock Exchange (NYSE), the American Stock Exchange (AMEX) and other US and Canadian regional exchanges . The index is also important in over-the-counter trading , so-called "open market or OTC trading" (primarily in the interbank market ).
Methods
The method of the Value Line Index differs from popular indices such as the Dow Jones Industrial Average or Standard & Poor’s . Companies that do not belong to an index can be included, provided they are only traded on the relevant stock exchanges.
Dow Jones and Standard & Poor's use the method of arithmetic and share value-based averaging. In contrast to this, the Value Line Index is based solely on the geometric mean for statistical purposes . This means that every share is included in the calculation of the index with the same weight. The index is therefore a well-respected indicator of price movements in low-valued stocks and speculative securities.
Contracts
The "Value Line Index" trading is a stock index futures trading with a defined number of stocks. Nonetheless, the number of companies in the Value Line Index is subject to fluctuations, which are triggered by the fact that companies are added or that they have gone public or bankrupt or that they incorporate and exchange one another through mergers and acquisitions . In the case of futures transactions , the contract , i.e. the standardized contract that is traded on commodity futures exchanges or futures exchanges, is listed as is the index. The value of the contract is obtained by multiplying the current index by a factor of 500. The smallest possible change in the index, which is reflected in the price change in the futures contract, is 0.05 index points, which corresponds to US $ 25 .
Contracts are only subscribed in March, June, September and December. Last trading day for contracts is the last business day of the settlement month, i.e. the month in which transactions and trades are carried out. The transaction is processed in cash after the account has been adjusted to the market value on the basis of the "Value Line Index" at the end of the last trading day.
Individual evidence
- ^ Daniel S. Shaffer, Profiting in Economic Storms: A Historic Guide To Surviving Depression, Deflation, Hyper-Inflation & Market Bubbles , pp. 131 ff.
- ^ Herbert B. Mayo, Investments: An Introduction , p. 334
- ↑ Wall Street Dictionary: Stock Exchange Lexicon from A to Z for Today's Investor, p. 598 ( Page no longer available , search in web archives ) Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.
