Nikkei Index Definition, Companies Included, Investing in Japan
Unlike many other indices that are market-capitalization-weighted, the Nikkei is price-weighted, giving greater influence to higher-priced stocks. In contrast, market-capitalization-weighted indices are less sensitive to stock price changes, as the weights are determined by market capitalization, which is less prone to short-term fluctuations. The Nikkei index comprises 225 blue-chip companies listed on the Tokyo Stock…
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