Value Line Composite Index

The Value Line Composite Average Index (VLA ) ( also abbreviated Value Line Composite Index or Value Line Index ) is an index of aggregate stock price movements, calculated on the basis of equally weighted averages of nearly 1680 unlisted shares that are traded on various stock exchanges in the United States, will. Relevance of the Index on the New York Stock Exchange ( NYSE), the American Stock Exchange ( AMEX), and other U.S. and Canadian regional exchanges. In the OTC market, the so-called " open market or OTC trading " (mainly in the interbank market ), the index has meaning.

Methods

The Value Line index differs in its method of popular indices such as the Dow Jones Industrial Average or the Standard & Poor's. Business, belonging to any index can be accepted if they are only traded on the relevant stock exchanges.

Dow Jones and Standard & Poor's use the methodology of the arithmetic and equity -linked value averaging. In contrast, the Value Line Index mean values ​​statistically depends solely on the Geometric Mean. This means that each stock with the same weight in the calculation of the index. Therefore, the index is considered to be acclaimed indicator of price movements of low priced stocks and speculative securities.

Contracts

The " Value Line Index" trading is a stock-index futures trading with a defined number of shares. However, subject to the number of companies in the Value Line index fluctuations, which are caused by the fact that companies to come or börsenabgängig or bankruptcy are or imbibe each other and share through mergers and acquisitions. Case of forward transactions ( financial futures ), the contract, that is, the standardized contract that is traded on commodity futures exchanges or futures exchanges as well noted as the index. The value of the contract resulting from the multiplication of the current index by a factor of 500, the smallest possible change in the index, which is reflected as a change of course of the futures contract is 0.05 index points, equivalent to 25 U.S. $.

Contracts are drawn only in March, June, September and December. Last Trading Day for contracts, the last business day of the settlement month, ie the month, will be performed in the transactions and deals. The processing of the transaction is done as a cash settlement account by adapting to the market value based on the " Value Line Index" at the end of the last trading day.