Definition
The term Baron's 400 Index refers to a portfolio of small to mid-cap stocks selected based on their perceived value to investors. Maintained by MarketGrader, the index was developed with the help of Barron's financial news editors.
Explanation
Also referred to as the B400, the Barron's 400 is a stock market index selected based on the security's perceived value. The index includes the stock of companies located in the United States and issues must be traded on either the New York Stock Exchange or the NASDAQ. Companies that are placed in the index must have a minimum float-adjusted market capitalization of $250 million and at least 25% of the securities must have a market capitalization value of $3 billion or higher. Securities are selected based on criteria that include growth trajectory, value, profit margins, return on equity, and cash flow.
Unlike many of the other well-known market indices, such as the Dow Jones Industrial Average, NASDAQ Composite and the S&P 500, the Barron's 400 is an equal weight index. The size of the company, in terms of market capitalization, is not included in the index's calculation.
First published on June 25, 2007, the index is updated every fifteen seconds during index trading days. The performance of the index can be tracked using the stock ticker B400.
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