m-poz-it]
adjective, noun, verb, -it⋅ed, -it⋅ing.| 1. | made up of disparate or separate parts or elements; compound: a composite drawing; a composite philosophy. |
| 2. | Botany. belonging to the Compositae. Compare composite family. |
| 3. | (initial capital letter ) Architecture. noting or pertaining to one of the five classical orders, popular esp. since the beginning of the Renaissance but invented by the ancient Romans, in which the Roman Ionic and Corinthian orders are combined, so that four diagonally set Ionic volutes, variously ornamented, rest upon a bell of Corinthian acanthus leaves. Compare Corinthian (def. 2), Doric (def. 3), Ionic (def. 1), Tuscan (def. 2). |
| 4. | Rocketry.
|
| 5. | Nautical. noting a vessel having frames of one material and shells and decking of another, esp. one having iron or steel frames with shells and decks planked. |
| 6. | Mathematics. of or pertaining to a composite function or a composite number. |
| 7. | something composite; a compound. |
| 8. | Botany. a composite plant. |
| 9. | a picture, photograph, or the like, that combines several separate pictures. |
| 10. | to make a composite of. |
com·pos·ite (kəm-pŏz'ĭt) adj.
[French, from Old French, from Latin compositus, past participle of compōnere, to put together; see component.] com·pos'ite·ly adv., com·pos'ite·ness n. |
Composite
A grouping of equities, indexes or other factors combined in a standardized way, providing a useful statistical measure of overall market or sector performance over time. Also known as a "composite index".
Investopedia Commentary
Usually, a composite index has a large number of factors which are averaged together to form a product representative of an overall market or sector. For example, the Nasdaq Composite index is a market capitalization-weighted grouping of approximately 5,000 stocks listed on the Nasdaq market. These indexes are useful tools for measuring and tracking price level changes to an entire stock market or sector. Therefore, they provide a useful benchmark against which to measure an investor's portfolio. The goal of a well diversified portfolio is usually to outperform the main composite indexes.
Related Links
Index Investing Tutorial
A Market By Any Other Name
Indexes: The Good, The Bad And The Ugly
See also: CBOE Nasdaq Volatility Index - VXN, Dow Jones AIG Commodity Index (DJ-AIGCI), Goldman Sachs Commodity Index - GSCI, Index, Indexing, NYSE Composite Index, OEX, Standard and Poor's 500 Index - S&P 500, Theoretical Dow Jones Index, VIX - CBOE Volatility Index
Also spelled: Composite Index
composite
aggregate