Security Market Indices (Calculations for CFA® Exams)

Master Equity Index Weighting Methods for the CFA® Level I Equity Investments exam with this lesson from AnalystPrep's Concept Capsules series. Learn how stock market indices are constructed, how different weighting methods work, and how to calculate index values and returns. This lesson explains price-weighted, equal-weighted, and market-capitalization-weighted indices using practical calculations. You'll also learn the differences between price return and total return indices, how free-float adjustments affect index weights, and how fundamental weighting methods are used to construct equity indices. What You'll Learn: ✓ Understanding security market indices ✓ Price return vs. total return indices ✓ Calculating equity index returns ✓ Price-weighted index calculations ✓ Equal-weighted index calculations ✓ Market-capitalization-weighted indices ✓ How stock prices affect index weights ✓ Calculating index values using market capitalization ✓ Float-adjusted market-capitalization weighting ✓ Understanding free-float shares ✓ Fundamental weighting methods ✓ Comparing different equity index weighting approaches Chapters: 0:00 Introduction to Equity Index Weighting Methods 0:26 Understanding Security Market Indices 1:18 Price Return vs. Total Return Indices 3:56 Price-Weighted Index Calculation 6:49 Equal-Weighted Index Calculation 11:39 Market-Capitalization-Weighted Index Calculation 14:44 Other Equity Index Weighting Methods 14:46 Float-Adjusted Market-Capitalization Weighting 16:38 Fundamental Weighting Methods Continue Your CFA® Preparation: CFA Level I: https://analystprep.com/cfa-level-1/ CFA Level II: https://analystprep.com/cfa-level-2/ CFA Level III: https://analystprep.com/cfa-level-3/ Follow AnalystPrep for more CFA® and finance education content: Facebook:   / analystprep   Instagram:   / analyst_prep   LinkedIn:   / analystprep   #CFA #CFALevel1 #CFAExam #EquityInvestments #EquityIndices #StockMarketIndex #PriceWeightedIndex #EqualWeightedIndex #MarketCapWeighted #IndexCalculation #FinancialMarkets #AnalystPrep