Index

Statistical measure designed to show the change of one or more related variables in time. Stock indices measure the performance of a selection of stocks representing a portion of the overall market. The components can be weighted acording various criteria (e.g. Market Capitalisation, Free-Float Market Capitalisation,  price-weighted...) and the indices can be calculated as price indices or on a "total return basis" to include the reinvestment of dividends paid. Stock Indices are often used as benchmarks for actively and passively managed investment funds and as underlyings for derivative products.

Source: 
WFE

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