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wilshire 5000 total market index

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Financial Dictionary

Wilshire 5000 Total Market Index - TMWX

A market capitalization-weighted index composed of more than 6,700 publicly-traded companies that meet the following criteria:

1) The companies are headquartered in the United States.
2) The stocks are actively traded on an American stock exchange.
3) The stocks have pricing information that is widely available to the public.

Investopedia Commentary

The Wilshire 5000 was originally comprised of 5,000 stocks but today is made up of more than 6,700. As with all market capitalization-weighted indices, the Wilshire overweights companies with a higher firm value, and underweights those with a lower firm value. This is one of the broadest indexes and is designed to track the overall performance of the American stock markets. Its ticker symbol is TMWX.

Related Links

Index Investing Tutorial
Indexes: The Good, The Bad And The Ugly

See also: American Stock Exchange - AMEX, Broad-Based Index, Dow Jones Industrial Average - DJIA, Index, Nasdaq, New York Stock Exchange - NYSE, S&P 500, Weighted

Also spelled: Wilshire Total Market IndexTMWX

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Financial Dictionary

Wilshire 5000 Total Market Index

A very comprehensive market-capitalization-weighted index composed of over 6,500 stocks. Stocks traded on the New York Stock Exchange represent approximately 77% of the value of the index. The Wilshire 5000 included 5,000 stocks when it was created in 1974 but has since been expanded. Wilshire Associates calculates numerous other indexes, including the Wilshire 4500, which excludes stocks composing the S&P 500.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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