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What Are the Two Basic Methods of Capturing Information? Comment

question 20

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What are the two basic methods of capturing information? Comment on the advantages and disadvantages of each.


Definitions:

Market Value

The current price at which an asset or a company can be bought or sold in the open market.

Value Weighted Index

An index in which each constituent is weighted according to its market value, reflecting the performance of the market based on total capitalization.

Share Weighted Index

A stock market index in which each company is weighted according to the total value of its outstanding shares.

Price Weighted Index

A stock market index in which each company's stock influences the index in proportion to its price per share.

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