total return index
Definition
An index that calculates the performance of a group of stocks assuming that all dividends and distributions are reinvested. Examples include the S&P 500, the Russell 2000, and the Wilshire 5000. This method is usually considered a more accurate measure of actual performance than if dividends and distributions were ignored.
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Related Terms
weighting, market-share weighted index, market-value weighted index, price-weighted index
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