Investor Glossary-commodity indexInvestor Glossary-commodity indexInvestor Glossary-commodity indexInvestor Glossary-commodity indexInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Commodity Index

The HTML to link to this page
 

A commodity index tracks the price of various types of commodities. A commodity index can track the price of commodities in the spot market or in the futures market. A commodity index is traded like any other indices and allows investors to invest in commodities without purchasing or storing the commodity itself. A commodity index can be grouped into subcategories such as energy, metals, agriculture, livestock, etc. A commodity index is calculated in accordance with a specific set of rules defined by the financial institution that is maintaining the commodity index. A commodity index is calculated by applying percentages to the price of each commodity group it includes. Depending on the commodity index, those percentages are based on liquidity, production, and/or how significant a commodity subgroup is in the world economy. The first and still re-known commodity index is the CRB Index now called the Reuters Jefferies CRB Index. Other popular commodity indices are the Dow Jones-AIG Commodity Index, the Deutsche Bank Liquid Commodity Index, the SP GSCI Commodity Index. Various Exchange traded Funds (ETFs) and mutual funds offer individual investors a relatively easy method by which to trade a particular commodity index.



Rate this Commodity Index definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: real GDP, inflation, phantom income, liquidity ratio, per diem, retained earnings, FICO score, Key Rate Duration, Zero Cost Collar, deferred tax, covered put, labor relations, irrevocable trust, ex-dividend date, minority interest, option premium, command economy, 1031 exchange, 1035 exchange, 401a, dividends payable, risk management, current ratio, LIBOR, balance sheet, open position, VIX, implied volatility, EBITDA, in escrow, 144a, margin rate, stock market close, quality assurance, reverse mortgage, stock split, diluted share, wholly-owned subsidiary, required rate of return, average price per share, debt service coverage, APR, annual return, ex-dividend, cancelled check, deferred revenue, FTSE, limit order, class C shares


Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use