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Financial Glossary
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 Index
A specialized average that represents a group of stocks
A relative expression of the weighted value of a group of securities used as a performance indicator (see FTSE indices).
Often applies to derivative products. Statistical composite that measures changes in the economy or in financial markets, often expressed in percentage changes from a base year or from the previous month. Most relevantly, indices measure the ups and downs of stock, bond , and some commodities markets, reflecting market prices and weighing of the companies on the index.
A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is essentially an imaginary portfolio of securities representing a particular market or a portion of it. Each index has it"s own calculation methodology and is usually expressed in terms of a change from a base value. Thus, the percentage changes is more important that the actually numeric value. For example, knowing that a stock exchange is at, say, 5000 doesn"t tell you much. However, knowing that the index has risen 30% over the last year to 5000 gives a much better demonstration of performance.
A means of continually measuring the movement of a particular set of statistics over periods of time. Most unit trust fund managers measure their fund"s performance against that of an appropriate "benchmark" index with the aim of at least matching its progress or, better still, beating it.
In the stock market, an index is a device that measures changes in the prices of a basket of shares, and represents the changes using a single figure. The purpose is to give investors an easy way to see the general direction of shares in the index.The FTSE 100, for example, is calculated by taking a weighted average of the share prices of the largest 100 companies on the London Stock Exchange. Launched in 1984 with a base figure of 1,000, the FTSE is calculated continuously throughout the trading day. When the media report that "FTSE climbed 37 points today" you don"t know exactly which shares in the index climbed and which fell, but you get an immediate idea of the direction of the market.Index funds base their investment decisions on tracking the companies in a particular index.
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Glossary 
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Index \ A specialized average that represents a group of stocks
A relative expression of the weighted value of a group of securities used as a performance indicator (see FTSE indices).
Often applies to derivative products. Statistical composite that measures changes in the economy or in financial markets, often expressed in percentage changes from a base year or from the previous month. Most relevantly, indices measure the ups and downs of stock, bond , and some commodities markets, reflecting market prices and weighing of the companies on the index.
A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is essentially an imaginary portfolio of securities representing a particular market or a portion of it. Each index has it"s own calculation methodology and is usually expressed in terms of a change from a base value. Thus, the percentage changes is more important that the actually numeric value. For example, knowing that a stock exchange is at, say, 5000 doesn"t tell you much. However, knowing that the index has risen 30% over the last year to 5000 gives a much better demonstration of performance.
A means of continually measuring the movement of a particular set of statistics over periods of time. Most unit trust fund managers measure their fund"s performance against that of an appropriate "benchmark" index with the aim of at least matching its progress or, better still, beating it.
In the stock market, an index is a device that measures changes in the prices of a basket of shares, and represents the changes using a single figure. The purpose is to give investors an easy way to see the general direction of shares in the index.The FTSE 100, for example, is calculated by taking a weighted average of the share prices of the largest 100 companies on the London Stock Exchange. Launched in 1984 with a base figure of 1,000, the FTSE is calculated continuously throughout the trading day. When the media report that "FTSE climbed 37 points today" you don"t know exactly which shares in the index climbed and which fell, but you get an immediate idea of the direction of the market.Index funds base their investment decisions on tracking the companies in a particular index.
Index / a specialized average that represents a group of stocks
a relative expression of the weighted value of a group of securities used as a performance indicator (see ftse indices).
often applies to derivative products. statistical composite that measures changes in the economy or in financial markets, often expressed in percentage changes from a base year or from the previous month. most relevantly, indices measure the ups and downs of stock, bond , and some commodities markets, reflecting market prices and weighing of the companies on the index.
a statistical measure of change in an economy or a securities market. in the case of financial markets, an index is essentially an imaginary portfolio of securities representing a particular market or a portion of it. each index has it"s own calculation methodology and is usually expressed in terms of a change from a base value. thus, the percentage changes is more important that the actually numeric value. for example, knowing that a stock exchange is at, say, 5000 doesn"t tell you much. however, knowing that the index has risen 30% over the last year to 5000 gives a much better demonstration of performance.
a means of continually measuring the movement of a particular set of statistics over periods of time. most unit trust fund managers measure their fund"s performance against that of an appropriate "benchmark" index with the aim of at least matching its progress or, better still, beating it.
in the stock market, an index is a device that measures changes in the prices of a basket of shares, and represents the changes using a single figure. the purpose is to give investors an easy way to see the general direction of shares in the index.the ftse 100, for example, is calculated by taking a weighted average of the share prices of the largest 100 companies on the london stock exchange. launched in 1984 with a base figure of 1,000, the ftse is calculated continuously throughout the trading day. when the media report that "ftse climbed 37 points today" you don"t know exactly which shares in the index climbed and which fell, but you get an immediate idea of the direction of the market.index funds base their investment decisions on tracking the companies in a particular index.
