Stock market index

In , a  index, or  market index, is an index that measures a  market, or a subset of the market, that helps  compare current stock price levels with past prices to calculate market performance.

Two of the primary criteria of an index are that it is investable and transparent: The methods of its are specified. can invest in a market index by buying an index fund, which are structured as either a mutual fund or an exchange-traded fund, and “track” an index. The difference between an index fund's performance and the index, if any, is called tracking error. For a list of major market indices, see List of market indices.

Last Updated on 2 years by pinc