Image source: Getty Images. In practice, using a price-weighted average to calculate a stock index means that the higher-priced stocks disproportionately influence the index's performance.

To calculate your average trade price, add all purchase prices and divide by the number of trades. Use weighted average trade price calculation if share quantities vary per purchase. Weighted ...

The Dow is a price-weighted index, which means that each component ... in particular. To calculate the Dow, you would simply add up the prices of its 30 stocks and divide the sum by the Dow ...

Stock indexes like the S&P 500 and the Nasdaq Composite go up and down in value according to the weighted average price movements of their component companies. Investors look to stock indexes like ...