Options Trading For Dummies
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To help understand financial index changes, you should know how indexes are built. Indexes are not created equal (well . . . one is). Financial indexes are constructed in three different ways:

  • Price-weighted: Favors higher-priced stocks

  • Market cap-weighted: Favors higher-cap stocks

  • Equal dollar-weighted: Each stock has same impact

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About the book author:

Dr. Joe Duarte is a financial ­writer, private investor and trader, and former money manager/president of River Willow Capital Management. In addition to Options Trading For Dummies, he is the author of Trading Futures For Dummies and Market Timing For Dummies. Visit his website at joeduarteinthemoneyoptions.com

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