Stock Market Index
A Stock Market Index is a financial indicator that measures the performance of a selected group of publicly traded stocks, providing a snapshot of market performance and serving as a benchmark for investment performance comparison.
- AKA: Stock Index, Market Index, Equity Index.
- Context:
- It can typically track Stock Market Performance by aggregating stock market prices of representative companies within a market segment.
- It can typically serve as a Stock Market Benchmark for evaluating investment performance against broader stock market trends.
- It can typically provide Stock Market Indicator values through stock market index calculation methods such as price-weighted stock market index calculation, market-cap weighted stock market index calculation, and equal-weighted stock market index calculation.
- It can typically represent Stock Market Sector performance by including stocks from specific industry groups or economic sectors.
- It can typically measure Stock Market Volatility through tracking stock market price fluctuations over time periods.
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- It can often serve as Stock Market Analysis Tool for professional investors to identify stock market trends and make investment decisions.
- It can often function as Stock Market Performance Reference in financial media and economic reports.
- It can often act as Stock Market Trading Reference for developing stock market derivative products like stock market futures and stock market options.
- It can often provide Stock Market Historical Data for conducting investment research and stock market performance analysis.
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- It can range from being a Narrow Stock Market Index to being a Broad Stock Market Index, depending on its stock market index coverage scope.
- It can range from being a Regional Stock Market Index to being a Global Stock Market Index, depending on its stock market index geographical scope.
- It can range from being a Traditional Stock Market Index to being an Alternative Stock Market Index, depending on its stock market index methodology.
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- It can have Stock Market Index Weighting Approaches such as market-capitalization stock market index weighting, price-weighted stock market index weighting, equal-weighted stock market index weighting, and fundamental-weighted stock market index weighting.
- It can include Stock Market Index Component selection based on market capitalization thresholds, sector representation requirements, and liquidity criteria.
- It can undergo Stock Market Index Rebalancing through scheduled stock market index reviews to maintain stock market index representation accuracy.
- It can be used to create Stock Market Index-Based Products such as index funds, exchange-traded funds, and stock market index future contracts.
- Examples:
- Major Global Stock Market Indexes, such as:
- U.S. Stock Market Indexes, such as:
- S&P 500 Stock Market Index, tracking large-cap U.S. stock market performance through market-capitalization weighting.
- Dow Jones Industrial Average Stock Market Index, representing blue-chip U.S. stock market performance through price-weighted methodology.
- NASDAQ Composite Stock Market Index, measuring technology-heavy U.S. stock market performance.
- Russell 2000 Stock Market Index, tracking small-cap U.S. stock market performance.
- European Stock Market Indexes, such as:
- Asian Stock Market Indexes, such as:
- U.S. Stock Market Indexes, such as:
- Specialized Stock Market Indexes, such as:
- Sector-Specific Stock Market Indexes, such as:
- Factor-Based Stock Market Indexes, such as:
- ESG Stock Market Indexes, such as:
- Custom Stock Market Indexes, such as:
- Proprietary Bank Stock Market Indexes created by investment banks for specific investment strategys.
- Theme-Based Stock Market Indexes focused on emerging trends like artificial intelligence, blockchain, or clean energy.
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- Major Global Stock Market Indexes, such as:
- Counter-Examples:
- Bond Market Index, which tracks fixed-income securities rather than stock market securities.
- Commodity Market Index, which measures commodity prices rather than stock market prices.
- Economic Indicator, which measures broader economic performance beyond stock market performance.
- Individual Stock Price, which represents a single company's market value rather than a market segment performance.
- See: Financial Market, Stock Exchange, Market Capitalization, Index Fund, Exchange-Traded Fund, Portfolio Performance Measurement, Benchmark, Passive Investing Strategy.
References
2014
- (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/stock_market_index Retrieved:2014-12-7.
- 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.
- 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.