Stock index

Stock index

Stock market index (stock index) - a composite measure of price change for a certain group of assets (commodities, derivatives, securities), which is called "index basket".

Accounting for stock index of the selected group of securities and other assets you can see the behavior of a particular market sector. With it, investors can track the mood of the market (its direction of motion) or a separate sector. This is possible even if the asset price index in the sample vary in different directions. So why, in fact, need a stock market index? By itself, the stock market index does not mean anything. This is the usual number, devoid of value. Interestingly not the stock market index and its dynamics, down from a daily calculation of the index.

What to study and analyze large volumes of information on all traded securities, the investor is much easier to track the desired stock indexes in order to see the status of a particular industry or general economic picture. I must say that now, to exchange stock indexes are often judged on the state of the economy of entire countries. In the case where the dynamics of the index is negative, that is, the market falls, then it is called a "bear." When the motion is directed upwards - taking power, "bull."

All the exchanges make their calculations based on stock indices traded on these securities. In addition, markets and stock exchanges can simultaneously calculate the number of market indexes that contain various "index basket". The values of stock indices and their dynamics are published in the media, in the regular reports of financial news, as well as information on Internet sites.