Stock Market Index

A stock index or stock market index is a method of measuring the value of a section of the stock market. It is computed from the prices of selected stocks (sometimes a weighted average). It is a tool used by investors and financial managers to describe the market, and to compare the return on specific investments.

An index is a mathematical construct, so it may not be invested in directly. But many mutual funds and exchange-traded funds attempt to "track" an index (see index fund), and those funds that do may not be judged against those that do.

Read more about Stock Market Index:  Types of Indices, Index Versions, Weighting, Criticism of Capitalization-weighting, Indices and Passive Investment Management, Ethical Stock Market Indices, Innovations Awards To Stock Indices, Lists

Famous quotes containing the words stock, market and/or index:

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    Nadine Gordimer (b. 1923)