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 Glossary   >   C   >   "Capitalization method" Definition   

        Capitalization method

A method of constructing a replicating portfolio in which the manager purchases a number of the largest-capitalized names in the stock index in proportion to their capitalization.

Capitalization method


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Capitalization method - A method of constructing a replicating portfolio in which the manager purchases a number of the largest-capitalized names in the stock index in proportion to their capitalization.


Capitalization method : a method of constructing a replicating portfolio in which the manager purchases a number of the largest-capitalized names in the stock index in proportion to their capitalization.