   
|
|
Stock Market Index
|
| FYI - For 2011, Dow up, Dogs of the Dow up more (double digits) |
| |
A stock market index is a hypothetical basket of securities designed to track market changes. The most widely followed US stock market indexes are the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite. Important international stock market indexes are the Nikkei 225 (Japan), FTSE 100 (UK) and Hang Seng (Hong Kong). Many stock market indexes can be traded with ETFs, futures and options.
Each stock market index has its own methodology for calculating the effect of changes in individual index components. The Dow Jones, for example, is a price-weighted stock market index where a rise of $1 in the stock of a $300B company produces the same affect as a rise of $1 in the stock of a $30M company stock. Most stock market indexes use capitalization-weighted adjustments to account for the differences in company size.
Rate this stock market index definition...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: inflation, FICO score, EBITDA, labor relations, option premium, 1035 exchange, 144a, deferred revenue, limit order, balance sheet, ex-dividend date, dividends payable, command economy, current ratio, phantom income, required rate of return, average price per share, real GDP, FTSE, stock split, deferred tax, diluted share, margin rate, class C shares, debt service coverage, minority interest, open position, annual return, ex-dividend, 401a, risk management, reverse mortgage, covered put, in escrow, LIBOR, implied volatility, wholly-owned subsidiary, irrevocable trust, quality assurance, stock market close, liquidity ratio, cancelled check, 1031 exchange, APR, Key Rate Duration, Zero Cost Collar, per diem, retained earnings, VIX
|
|
| |