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 ...

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 ...

The consumer price index is a weighted average collection of the ... inflation over as short a period as a single month. How to Calculate Inflation Using the CPI To calculate an estimated rate ...