Chain base index

Definition:

For this type of index, a value in any specific time period is based on the value of the same entity in the preceding period. Changes in values can be compared between sequential time periods. This differs from a fixed base index in which values in any period are based on the initial value. See: Fixed base index, Index number

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Guaranteed Mortgage Certificates (GMC)

First issued by Freddie Mac in 1975, G.M.C.s, like PCs, represent undivided interest in specified conventional whole loans and participations previously purchased by Freddie Mac.

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