Index

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MarketWatch  1 hr ago  Comment 
Major U.S. stock indexes turn positive, reversing early Thursday losses
Mondo Visione  Mar 22  Comment 
Bats Europe, a CBOE Holdings, Inc. company and the region's largest equities exchange operator, today announced it has launched the Bats Brexit 50/50 Indices, two new benchmark indices designed to reflect the impact of Brexit on UK...
Benzinga  Mar 19  Comment 
Major cannabis stock indices have been falling for three consecutive weeks, ever since White House Press Secretary Sean Spicer suggested the federal government would enforce federal law in states where recreational weed has been legalized, despite...
MarketWatch  Mar 16  Comment 
The major stock market indexes may be falling, but the broader market of stocks is actually rising. The number of advancing stocks is outnumbering decliners by a 1,615-to-1,325 score on the NYSE, and by a 1,541-to-1,143 margin on the Nasdaq...
The Economic Times  Mar 16  Comment 
On March 10, the Nifty50 was trading at a price-to-earnings (P/E) ratio of 23.20 against a five-year average of 20.18, indicating over-valuation of the index.
New York Times  Mar 14  Comment 
Stock indexes sank Tuesday after yet another drop in the price of oil dragged down shares across the energy industry. Other areas of the market saw modest losses as investors wait to hear from the Federal Reserve, which began a two-day policy...
The Hindu Business Line  Mar 12  Comment 
Both the Nifty and Sensex were unable to cross key resistance levels last week
SeekingAlpha  Mar 9  Comment 
Mondo Visione  Mar 9  Comment 
In February, Moscow Exchange"s Indices reflected the negative trend by the MICEX Index on the Russian stock market. The MICEX Index was down 8.19% to 2,035.77 (from 2,217.39 on 31 January), while the dollar-denominated RTS Index fell 5.56% to...




 
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An index, when used with respect to financial markets, is a statistical measure of change in a securities market. Indexes, or indices (both are correct in American English), are imaginary portfolios of securities (usually stocks) representing a particular market or a portion of it.

This is the chart for the Dow Jones Industrial Average. Scroll down for a list of major world indices on Wikinvest.



Generally, an index has three main purposes:

  • An Index shows the performance of a basket of equities instead of just a single equity - IE an index is diversified.
  • An index can show the performance of a particular class of assets - for example, a biotechnology index would show the performance of a diverse group of biotech companies over time.
  • An index can also be used to provide a generic securities category for passive management and derivatives (passive investing).

Each index is calculated using its own methodology, and its value is expressed in terms of a change from an original base value. So the numerical value of an index is not as significant as the percent change in the index.

Investing in indexes is a way to invest in the performance of a broad market sector, or in the market as a whole. But to trade an index, an investor must buy or sell through a third party. Stock and bond market indexes are used to make mutual funds and exchange-traded funds (ETFs) that mirror the performance of the index. Regardless of security type, indexing can cover broad categories such as a Total Market Index like (VTI), index investing can also be more micro and track sectors such as Small Cap Brazilian Companies (BRF).

When investing in an Exchange Traded Funds that tracks an index, an investor buys or sells an entire group of stocks when trading that particular ETF - an example is the StreetTRACKS Dow Jones Global Titans Index Fund (DGT). Some indexes allow investors to put money into commodities - an example is the PowerShares DB Commodity Index Tracking Fund (DBC) - while others, like the Baltic Dry Index (BDI), are important economic indicators used to measure the rates under which services are sold in a particular industry (in the case of the BDI, dry bulk shipping). Still others are forward looking, measuring the anticipated volatility of the markets - an example is the Nasdaq Volatility Index (VXN).

Major World Index on Wikinvest

There are many products available to investors to give them exposure to international indices. Mutual Funds and ETFs are the most widely held instruments which investors use to track markets around the world. Some examples of Major World Indices would be MSCI Emerging Market Index (EEM), MSCI EFAE Index (EFA), or Vanguard Emerging Markets (VWO). These are just a few examples of common securities offered to investors seeking exposure to an international world market index.

It is important to consider the currency risks of investing in many international index funds as well as the potentially higher costs associated with the transactions needed to operate the fund (trading, taxes, etc).


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