Market Average
A measure of the overall price level of a given market, as defined by a specified group of stocks or other securities. A market average equals the sum of all current values of stocks in the group divided by the total number of shares in the group.
Investopedia Commentary
A market average measurement is a simple way to evaluate the price level of a group of stocks. For example, the Dow Jones Industrial Average, which is a price-weighted average, covers 30 blue chip stocks listed on the NYSE and is widely used to track overall U.S. stock market performance.
Related Links
Calculating The Dow Jones Industrial Average
Index Investing Tutorial
See also: Blue Chip, DJIA, Index, Moving Average, Weighted Average, Weighted Average Market Capitalization
Also spelled: average