The index is price-weighted index and the constituent companies are reviewed twice a year.

The development of a price-weighted index will not accurately reflect the evolution of the underlying market values.

The Dow is normally calculated as a price-weighted index, meaning that stocks with the highest price for a share get the heaviest weighting.

A price-weighted index is a stock market index where each constituent makes up a fraction of the index that is proportional to its price.

It is a price-weighted index, calculated as the market value of a portfolio of stocks selected based on their market share, number of transactions and quotation price.

The AMEX Oil Index, ticker symbol XOI, is a price-weighted index of the leading companies involved in the exploration, production, and development of petroleum.

Thus, it is possible to construct an index-replicating portfolio for arithmetic market-weighted indices and for price-weighted indices, such as the Nikkei Stock Average and the MMI.

The NYSE Arca Tech 100 Index is a price-weighted index composed of common stocks and ADRs of technology-related companies listed on US stock exchanges.

A change in the price quote of the small company will thus drive the price-weighted index (as it makes up a large part of the index) while the combined market values will remain relatively unaffected without changes in the price quote of the large company.

In a price-weighted index such as the Dow Jones Industrial Average, Amex Major Market Index, and the NYSE ARCA Tech 100 Index, the price of each component stock is the only consideration when determining the value of the index.