Stock Indices
a.k.a. Stock index, Indexes, Indices
Baskets of stocks tracked as one number to show how a market or sector is doing overall.
In plain English
Baskets of stocks tracked as one number to show how a market or sector is doing overall.
A stock index bundles a group of shares into a single number, so you can see at a glance whether "the market" went up or down. The S&P 500, Nasdaq 100, FTSE 100, DAX and Nikkei 225 are famous examples.
Indices differ in how they are built: some weight companies by size, some by share price. Many brokers let you trade them as CFDs. Forex traders watch them as a quick read on risk sentiment.
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