A stock market index is a statistical measure of changes in the securities markets. An index represents a portfolio of securities traded on the market that is considered to be reasonably representative of the market as a whole. Each index has its own method of calculation. It is generally expressed as a change from its base value. For a better understanding of the stock market, an index should be read not at its absolute numerical value but at the percentage change in its numerical value. One cannot invest in an index directly. However, you can invest in index related mutual funds.
Popular indexes in the US
The Standard & Poor's 500 Index ? The S & P 500 index
This index is the most popular index in the world. The S & P 500 index consists of 500 stocks chosen on the basis of industry, market capitalization, liquidity and other factors. It is a leading indicator of US stocks. The index does not include speculative stocks.
The Dow Jones Industrial Average (DJIA) ? popularly known as the Dow
This index consists of 30 significant stocks traded on the New York Stock Exchange (NYSE) and the NASDAQ. It includes companies such as Microsoft, Exxon Mobil, Disney, and General Electrical. The index does not include speculative stocks.
The Dow Jones Utility Average (DJUA)
The DJUA is more of a sector based index as it is a price-weighted average of 15 utility stocks traded in the US. It is sensitive to interest rate changes as utility companies tend to borrow a great deal of money.
The Russell 2000 Index
This index consists of 2,000 small company stocks that are included in the Russell 3000 index. It serves as a bench mark for small company stocks in the US.
Wilshire 5000 Total Market Index (TMWX)
This index measures the stock performance of all US headquartered equities for which price data is readily available. It is one of the broadest stock market indices. It includes equities of more than 7,000 companies traded on US Stock Exchanges.
The Nasdaq Composite Index
It tracks companies traded on the Nasdaq Stock Exchanges. The index consists of stocks of more than 5,000 companies traded on Nasdaq. Most of these companies are technology companies. However, you will find companies in the financial, industrial, transportation and insurance sectors. It also consists of many speculative companies.
Read More Free Investment, Wealth Creation & Personal Finance Articles & Tutorials at: http://www.global-investment-institute.com
The Global Investment Institute has been setup to aid people in the pursuit of a better lifestyle through managing their money effectively, investing wisely and wealth planning for their future.
executive chauffeured services Bradford .. Madison to Airport car1. Do not spread your money too thin.My friend has... Read More
Intervention. Now don't let that big word scare you. The... Read More
Since I can remember, and that's a long time ago,... Read More
This is a guide to the different types of mutual... Read More
Ever turn down a street, get half way and suddenly... Read More
If you are going to be a winner in the... Read More
Never lose money in the stock market again. Yeah, I... Read More
You have decided to buy some stock or mutual funds,... Read More
The big bad bear is stirring again. So far he... Read More
On the 40 year journey through the turmoil of a... Read More
For some "long term" would mean holding a stock position... Read More
The ABC's of Stock Trading SuccessStock trading success...why is it... Read More
There are many good penny stock investments available, which could... Read More
I continually hear from economists, talking heads, other market letter... Read More
No, this is not a symbol for some Latin number.... Read More
It depends on your level of understanding of the market... Read More
When it comes to stock market trading it PAYS to... Read More
Congress recently passed another new law that is supposed to... Read More
Refuse is a serious issue in any society, about as... Read More
A Guide to Using Stop Loss Orders Stop losses are... Read More
With over 6,000 mutual funds available, it may be tempting... Read More
Right now there doesn't seem to be any "gold fever".... Read More
People are constantly asking me why is the stock market... Read More
I receive emails from Morningstar. This company provides statistics and... Read More
How can you dispel an illusion unless you look directly... Read More
O'Hare Chicago prom limo ..There are so many kinds of work that needs to... Read More
As an investor you will want to check out any... Read More
For years investors have been taught to look into the... Read More
An insane person cannot evaluate an insane evaluation system.As you... Read More
Where is the beef? Or maybe it should be where... Read More
When you invest in the stock market for ever-increasing cash... Read More
Have you seen all those big full page ads for... Read More
Economists know more about how the fragments of society work... Read More
I am sure that if you have a brokerage account... Read More
Let's say you are interested in this one company. You... Read More
Day trading is all about making buy and sell decisions.... Read More
The trash business in its efforts to cook their books... Read More
Do you have a nest egg? You know, a place... Read More
So you're started trading, you bought some positions with your... Read More
When is a dividend not a dividend?The latest thing "conservative"... Read More
I was recently interviewed for a press release through a... Read More
Are you one of those many people who dread reading... Read More
Congress recently passed another new law that is supposed to... Read More
On Monday, November 25, 2000 Investor's Business Daily listed on... Read More
When it comes to mutual funds, there is a lot... Read More
People are constantly asking me why is the stock market... Read More
If you are going to be a winner in the... Read More
The Surgeon General of the United States says that smoking... Read More
Exchange Traded Funds (ETFs) are growing. Investors are choosing low... Read More
I was devastated!I just couldn't believe it. I was 10... Read More
Stocks & Mutual Fund |