A stock index or stock market index is a measurement of the value of a section of the stock market. It is computed from the prices of selected stocks (typically a weighted average). It is a tool used by investors and financial managers to describe the market, and to compare the return on specific investments.
An index is a mathematical construct, so it may not be invested in directly. But many mutual funds and exchange-traded funds attempt to "track" an index (see index fund), and those funds that do not may be judged against those that do.
Types of indices
Stock market indices may be classed in many ways. A 'world' or 'global' stock market index includes (typically large) companies without regard for where they are domiciled or traded. Two examples are MSCI World and S&P Global 100.
A 'national' index represents the performance of the stock market of a given nation—and by proxy, reflects investor sentiment on the state of its economy. The most regularly quoted market indices are national indices composed of the stocks of large companies listed on a nation's largest stock exchanges, such as the American S&P 500, the Japanese Nikkei 225, and the British FTSE 100.
For those who want to invest in S&P 500 index stocks, here is a cost-effective option to create wealth over the long term. SPDR S&P 500 ETFTrust, popularly known by the name SPY in the US stock market circle, is the one to buy if you want to own the entire basket of stocks listed on the S&P 500 index.
A worker wearing a protective mask cleans in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Friday, Aug ... A worker wearing a protective mask cleans in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Friday, Aug.
The FTSE 100 index has bounced back in the past few weeks as global stocks rebound. The index of blue-chip UK companies rose to a high of £7,550, which is slightly above this week’s high of £7,492 ... Here are some of the top stocks driving the FTSE 100 ... The stock jumped to the highest level since February this year.
Traders on floor of the New YorkStockExchange... The bank found that just four large-cap stocks contributed 30% of the index's recent gain. The summer surge in the S&P 500 should be considered an average bear-market rally and the index remains vulnerable to falling under its recent lows, according to Bank of America.
A worker wearing a protective mask cleans in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Friday, Aug ... Stocks are opening lower on Wall Street, putting the S&P 500 index on track to break a four-week winning streak. The benchmark index was off 0.9% in the early going Friday.
In your younger years, the focus should be on growing your money with stocks ... This means lessening your stake in stocks and upping your stake in bonds and cash ... There are generally four types of index funds you need for a well-rounded retirement stock portfolio ... Stocks (100%), bonds (0%), cash (0%). Stock breakdown ... Stocks (90%), bonds (10%), cash (0%).
NEW YORK (AP) — Stocks fell in morning trading on Wall Street Friday, putting major indexes on track for losses that will end a solid run of weekly gains ... NEW YORK (AP) — Stocks fell in morning trading on Wall Street Friday, putting major indexes on track for losses that will end a solid run of weekly gains.