what is weighted
weighted is a description of adjustments to a figure to reflect different proportions or weights of components that make up that figure a weighted average for example takes into account the proportional relevance of each component instead of measuring each individual component equally the dow jones industrial average djia is a price weighted average that compares each security based on the stock s price relative to the sum of all the stocks prices the s p 500 index and nasdaq composite index on the other hand are based on market capitalization where each company is measured relative to its market value 