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Stock Index

Stock Index Definition

Stock Index describes an indicator used to measure value changes in a section of the stock market. The index is based on a statistical compilation of the prices of a number of representative stocks. It represents an average of a basket of stocks, that are usually weighted, some stocks have more weight in the index price than others. Some examples of stock indexes are: S&P 500, Dow Jones and Nasdaq.
RELATED TERMS
Dow Jones Industrial Average (DJIA)
NASDAQ
S&P 500
RELATED CATEGORIES
Stocks



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