Pkeservice

The Secret of Successful Investing
  • Privacy Policy

Understanding Stock Market Indexes

A stock exchange index is a statistical measure of changes in the securities markets. An index represents a portfolio of securities traded on the marketplace that’s regarded as reasonably representative of the marketplace as a whole. Each index has its own method of calculation. It’s usually expressed as a change in the base value. For a better understanding of the stock exchange, an index ought to be read not in its absolute numerical value but in the percent change in its numerical value. An individual can’t invest in an index directly. But you can invest in index related mutual funds.

Popular indicators in the Usa
The Standard & Poor’s 500 Index – The S & P 500 index
This indicator is the most popular index on the planet. The S & P 500 index consists of 500 stocks chosen on the basis of industry, market capitalization, liquidity and other factors. It’s a leading indicator of US stocks. The index doesn’t include speculative stocks.

The Dow Jones Industrial Average (DJIA) – popularly known as the Dow
This index is composed of 30 significant stocks traded on the New York Stock Exchange (NYSE) and the NASDAQ. It includes companies like Microsoft, Exxon Mobil, Disney, and General Electrical. The index doesn’t include speculative stocks.

The Dow Jones Utility Average (DJUA)
The DJUA is more of a business based indicator since it’s a price-weighted average of 15 utility stocks traded in america. It’s sensitive to interest rate changes as utility businesses tend to borrow a lot of money.

The Russell 2000 Index
This index contains 2,000 small company stocks that are included in the Russell 3000 index. It functions as a bench mark for small business stocks in america.

Wilshire 5000 Total Market Index (TMWX)
This indicator measures the stock performance of all US headquartered equities for which cost data is easily available. It’s one of the broadest stock market indices. It includes equities of over 7,000 companies traded on US Stock Exchanges.

The Nasdaq Composite Index
It monitors companies traded on the Nasdaq Stock Exchanges. The index includes stocks of over 5,000 companies traded on Nasdaq. The majority of these companies are technology firms. However, you’ll discover businesses in the financial, industrial, transport and insurance businesses. Additionally, it consists of many speculative businesses.

December 23, 2019 average, businesses, companies, index, indicator, market, nasdaq, speculative, stock, traded

Previous
Next

SEARCH

ARCHIVES

  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019

TAGS

account broker brokerage business businesses buying companies company currency decision earnings financial future garbage growth invest investment investor market markets money offer online opportunities option order people point portfolio position price probably purchase research return selling share stock strategies technical trade traded trader trading value