What are indices?
Indices are a measurement of price of a certain set of securities listed on an exchange. Indices are also called an index. Very commonly known indices are:
- S&P 500
- Dow Jones
- Euro Stoxx 50
All these indices track a specific type of stock mostly based on size or market capitalization (current stock price * amount of outstanding shares). Companies can go in and out of indices many times. Most indices track the biggest companies. If a company goes bankrupt or loses a lot of net worth, the company leaves the index and another company takes its spot. When an ETF or mutual fund tracks an index, it tracks an indice.
Chapters: The Ultimate Investing Guide
- 1. Intro2. What is investing?3. What are stocks?4. Types of stocks5. Why buy stocks?6. How to buy stocks7. Store stocks8. Stock splits9. Stock quests10. What are bonds?11. Secured bonds and maturity12. How do bonds work?13. Credit rating14. Treasury bonds15. Corporate bonds16. Municipal bonds17. Agency bonds18. Bond quests19. Mutual funds20. Mutual funds earnings21. ETFs22. Why ETFs23. Index funds24. Hedge funds25. Derivatives26. Commodities27. Indices28. Overview29. Determine company value30. IPOs31. Penny stocks32. Dividends33. Financial health34. Profitability35. Operating efficiency36. Liquidity37. Solvency38. Market Evaluation39. Not only numbers40. Investing portfolio considerations41. Creating portfolio42. Buy/Sell Strategy43. Broker44. Emotions45. Final steps46. Key Concepts
How you think about this?