Definition of stock market indexes

Definition of stock market indexes

By: good-shop Date of post: 19.06.2017

Company Filings More Search Options. A market index tracks the performance of a specific "basket" of stocks considered to represent a particular market or sector of the U. There are indices for almost every conceivable sector of the economy and stock market.

Many investors are familiar with these indices through index funds and exchange-traded funds whose investment objectives are to track the performance of a particular index. Here are general descriptions of a few major market indices.

The SEC does not regulate the content of these indices and is not endorsing those described here. You can also find them described on their sponsors' websites and in the available information of the funds that track them.

definition of stock market indexes

The Dow Jones Industrial Average is an index of 30 "blue chip" stocks of U. The Index includes a wide range of companies—from financial services companies, to computer companies, to retail companies—but excludes transportation and utility companies, which are included in separate indices.

Unlike many other indices, the DJIA is not a "weighted" index, meaning it does not take market capitalization into account. The NYSE Composite Index tracks the price movements of all common stocks listed on the New York Stock Exchange. The Index is "capitalization-weighted" that is, each stock's weight in the Index is proportionate to the stock's market capitalization.

What is a stock exchange? definition and meaning - aqasesuyohaw.web.fc2.com

Stocks in the Index are chosen for market size, liquidity, and industry group representation. The Wilshire Total Market Index is intended to measure the performance of the entire U. It contains all U.

The Index is a capitalization-weighted Index. To be included in the Index, a stock must have a minimum average daily trading volume of , shares.

definition of stock market indexes

Generally, companies on the Index also must have traded on Nasdaq, or been listed on another major exchange, for at least two years. You can also find short descriptions of these and many other market indices on the Nasdaq website.

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Securities and Exchange Commission. Dow Jones Industrial Average DJIA The Dow Jones Industrial Average is an index of 30 "blue chip" stocks of U. NYSE Composite Index The NYSE Composite Index tracks the price movements of all common stocks listed on the New York Stock Exchange.

Wilshire Total Market Index The Wilshire Total Market Index is intended to measure the performance of the entire U.

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