Dow Jones BRIC 50 Index

  

The Dow Jones BRIC 50 Index contains stocks of 50 super-liquidity, super-big companies in “BRIC”-land (Brazil, Russia, India, and China). It’s a market capitalization-weighted stock, which means size matters (and not just price...stay focused here). It’s also weighted to make sure its balance doesn't get too out of whack. For instance, no single stock can represent more than 10% of the index...because that’d be uncool, and wouldn't make for a very good index.

The Dow Jones BRIC 50 Index is one family member of the Dow Jones Global Indexes, which each region having its own index rep. This index even has child-indexes: The Dow Jones BRIC Brazil 15 Index, the Dow Jones BRIC China 15 Index, the Dow Jones BRIC China 15 Capped Index, the Dow Jones BRIC India 15 Index, the Dow Jones BRIC India 15 Capped Index, and the Dow Jones BRIC Russia 5 Index. Not all stocks from all of those indexes are included in the Dow Jones BRIC 50 Index—only ones in the top 10 of each of those are considered to make the cut.

Yep...it’s a competitive world out there.

Find other enlightening terms in Shmoop Finance Genius Bar(f)