Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.

‘Arithmetic mean’ is a fancy way of saying ‘mean’ or ‘average.’

To find the arithmetic mean, you add together a set of numbers and then divide your answer by the amount of numbers you had in that original set.

This may sound wordy - especially for math-o-phobes - but it’s really simple.

Take 1,2,3,4,5 as a set of numbers.

1+2+3+4+5 =15

In our original set, there were 5 numbers. So to get the average we just do….

15 ÷ 5 = 3

Simples.

More terms

Oligopoly

A situation in which a market or industry is controlled by a small group of companies.
Read more

UK Treasury bill

A debt instrument issued by the UK government with a maturity of less than one year.
Read more

Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.
Read more

Net Income (NI)

The money a firm is left with from sales after subtracting taxes and different business costs.
Read more

Bull market

We explain what a 'bull market' means
Read more

S&P 500

Find out what is the definition of the S&P 500 index.
Read more

Bond

Learn what a bond is
Read more

Wall Street

A street in New York that became a figure of speech for the financial markets of the US.
Read more

Exchange-Traded Fund (ETF)

A collection of investments, pooled into a single fund that can be bought and sold on a stock exchange.
Read more

You’re just minutes away from commission-free investing

When you invest, your capital is at risk