The geometric index or industrial share index, Mathematics

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The Geometric Index or Industrial Share index

The Geometric Index or Industrial Share index is an index of 30 selected top industrial companies. This is calculated by taking an un-weighted geometric mean of the price relatives of the chosen shares.

Illustration

The share prices of ordinary shares of four companies on date 1st January 1990 and on date 1st January 1991 were given as.

Share	Price on 1.1.1990	Price on 1.1.1991
Company A	Shs 10	Shs 12
Company B	Shs 12	Shs 15
Company C	Shs 20	Shs 25
Company D	Shs 5	Shs 6

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