Index of | Stock Market Index | Definition

Index of

Index of | Stock Market Index

In the investment field, an index is a measurable representation of a market or a subset of a market. For example, the Dow Jones Industrial Average, the S&P 500 and the Russell 2000® are indexes commonly used to describe segments of the US stock market.

Indexes are unmanaged and cannot be invested in directly. In general, there are three purposes that a market index can serve:

Performance Benchmark

To measure an active portfolio's results compared to a source of return

Asset Class Proxy

To represent the characteristics of an asset class without the influence of active management

Trading Vehicle

To provide a generic securities category for passive management and/or derivatives


For over 1,000 additional terms and definitions please see our Investment Glossary Guide.

Related to Index of | Stock Market Index:


Tags: Index of | Stock Market Index, index of, indices of, stock index, market index, stock market index, stock market indices, stock indices, market indices, name index, stock index

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.