A stock index is an index that measures the performance of a particular group of stocks over time.
The aim of stock indices is to provide an accurate and efficient way for investors to reliably compare current stock market prices with past stock market prices. Indices can be used to measure overall stock market performance, and can also be used to benchmark an investor’s performance.
Examples of stock indices include:
The S&P 500 index, which tracks the performance of 500 large-cap companies listed in the US and is generally seen as a broad representation of the US stock market.
The FTSE 100 index which tracks the performance of 100 large-cap stocks listed in the UK and is the most widely-used UK stock market indicator.
The Nikkei 225 index, which tracks the performance of 225 top companies listed in Japan and is the most recognised Japanese stock market index.
Reprinted from eToro, the copyright all reserved by the original author.
تم التحرير 15 Nov 2021, 10:24
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