Indices

What is an Index?

A stock index is a numerical representation of the performance of a group of selected stocks, typically categorized by factors like market capitalization, industry sector, or geographic location. It serves as a benchmark for measuring investment portfolio performance, a tool for tracking market trends and sentiment, and a basis for financial products like index funds and ETFs. Well-known examples include the S&P 500, FTSE 100, and Nikkei 225, which provide insight into the performance of the broader stock market in their respective regions.