Definition of Stock Index
Miscellanea / / July 04, 2021
By Florencia Ucha, in Mar. 2014
The one of index stock exchange is a concept that is widely used in the field of economy and the finance and what names a record statistical that consists of a number that is proposed to reflect the oscillations in the value, or failing that the cost effectiveness average, of the shares that comprise it.
Normally, the shares that make up this index have similar characteristics such as: they make up the same stock Exchange, have the same market capitalization or belong to the same industry.
It should be noted that a share is a title that a company issues and that is representative of the value of one of the equal fractions into which its share can be divided. social capital.
There are several stock indices in the world, linked to certain countries and that are widely recognized internationally, including: the Dow Jones (United States), Merval (Argentina), Bovespa (Brazil), Ibex (Madrid), Nikkei 225 (Japan).
The Dow Jones, for example, the most watched stock index in the world, is the oldest in the United States and has been jointly created by the
economist and journalist Charles Henry Dow and the financial daily The Wall Street Journal in the late nineteenth century. Its main mission was the economic and financial measurement of the country. Another of the stock indices of the United States is the Nasdaq which is in charge of gathering the hundred values of the most outstanding companies in the North American industry.For its part, the Merval, is the main stock index of Argentina and therefore of the Buenos Aires Stock Market. He himself demonstrates the evolution one of the most prominent Argentine companies based on the volume they have traded.
These include: Aluar, Bank Macro, Petrobras, Telecom, YPF, Siderar, among other.
The stock index is an economic indicator on which the eyes of the whole world rest and which mainly reflects the political and economic ups and downs that affect a country or region, that is, when the economy is not doing well or when a significant political event occurs, all of this is usually reflected in the price of the stock index in question.
Topics in Stock Index