ADVERTISEMENT

What is an Index? Comments

  • By Jocelyn Black Hodes, DailyWorth's Resident Financial Advisor
  • June 21, 2013

An index is a statistical representation of the value of securities with certain charactertistics that make it up. An index often serves as a barometer for a given market or industry and benchmark against which financial or economic performance is measured. For example, the S&P 500 Index is a basket of 500 stocks that are considered to be widely held by investors and provide a broad snapshot of the overall U.S. equity market. 

 

See Also:

The Best Choice For Your 401(k)

The Market's at Redcord-Highs -- Time to Buy or Bail Out?

Smart Strategies for Retirement Income 

Mutual Funds vs. ETFs: Which Should You Invest In 

Indices Are Good to Know 

What Does it Mean to 'Short' a Stock? 

Tagged in: Sponsored, Glossary
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

© Copyright DailyWorth 2014

ADVERTISEMENT