Concept
Market Concentration
A key indicator for measuring systemic market risk, typically calculated as the proportion of an index's total market capitalization accounted for by its top ten weighted stocks. Excessive concentration amplifies negative shocks.
Timeline (last 90 days)
Oct 13
Market concentration is usually measured by the proportion of the top ten weighted stocks in the index's total market capitalization, and when this proportion reaches a historical high, the fluctuations of a few stocks are enough to sway the direction of the entire index.
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