Stock market index
Also called: index, indices, benchmark index
A number that tracks the combined price movement of a defined basket of shares, to show the general direction of a market.
An index summarises how a group of shares has moved. Most broad indices weight each company by its free-float market capitalisation, so larger companies move the index more.
Indices serve as benchmarks for judging performance and as the basis for index funds. They represent only the companies in their basket, which change at periodic reviews.
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