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Bos, CFA - Standard & Poor's Quantitative Services 3
Index Groupings
? There are many types of indexes, each
trying to measure different groups of stocks:
Broad based Narrow
Small Cap Economic Sector
Mid Cap Industry
Large Cap
Value
Growth
Geographic region
? Or any combination of the above.
Roger J. Bos, CFA - Standard & Poor's Quantitative Services 4
Index Groupings
? These groupings are usually based on
simple financial ratios.
? Size (small, mid, or large) is based on
market cap, which is price times shares
outstanding.
? Style (value or growth) is often based on
book to price ratio, which is the company's
common equity divided by its share price...
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