{"id":1146,"date":"2021-04-27T20:39:37","date_gmt":"2021-04-27T20:39:37","guid":{"rendered":"https:\/\/enorcerna.com\/wiki\/what-is\/stock-indices\/"},"modified":"2021-04-27T20:39:37","modified_gmt":"2021-04-27T20:39:37","slug":"stock-indices","status":"publish","type":"post","link":"https:\/\/enorcerna.com\/wiki\/what-is\/stock-indices\/","title":{"rendered":"Stock indices"},"content":{"rendered":"
\n

What are stock indices?<\/h2>\n

A stock index is a indicator<\/strong> which measures the profitable variations of the shares <\/strong>of the companies that compose it.<\/p>\n

The companies that make up a stock index generally share common characteristics, <\/strong>such as belonging to the same industry or stock exchange. For example, the NASDAQ index is comprised primarily of technology organizations.<\/p>\n

Types of stock indices<\/h2>\n

Stock indices are classified according to the type of companies that comprise it:<\/p>\n

    \n
  • Global stock indices:<\/strong> companies worldwide.<\/li>\n
  • International stock indices: <\/strong>companies belonging to one country or several.<\/li>\n
  • National stock indices: <\/strong>companies from a particular country.<\/li>\n
  • Sectoral stock indices:<\/strong> companies located in a single sector.<\/li>\n
  • Cross-sector stock indices:<\/strong> any type of company.<\/li>\n
  • Commodity stock index: <\/strong>specialized in different companies that commercialize materials such as gold, silver and oil.<\/li>\n<\/ul>\n

    Functions of stock indices<\/h2>\n

    A stock index performs several important functions:<\/p>\n

      \n
    • It serves as a reference for the actors in a market.<\/strong><\/li>\n
    • F<\/strong>unctions as actual status report <\/b>of an economy, business sector or industry, without the need for each of the companies belonging to these segments to be analyzed.<\/li>\n
    • Allows companies to meet the requirements<\/strong> solvency, government policies and financial transparency.<\/li>\n
    • Record economic performance<\/strong> of any company or industry and makes it evolve according to its prices.<\/li>\n<\/ul>\n

      Main stock indices<\/h2>\n

      The following are relevant stock indices worldwide and that serve as a reference for their economies:<\/p>\n

      USA<\/h3>\n

      In recent years, the US indices have been the most prominent worldwide. Among them are:<\/p>\n

        \n
      • NYSE<\/strong>: New York Stock Exchange, where more than 3,000 companies are listed.<\/li>\n
      • Dow Jones<\/strong>: located in New York, United States.<\/li>\n
      • NASDAQ<\/strong>: also located in New York, it has more than 3,800 technology companies.<\/li>\n<\/ul>\n

        Latin America<\/h3>\n
          \n
        • CPI<\/strong>: made up of 35 companies listed on the Mexican Stock Exchange.<\/li>\n
        • Merval<\/strong>: made up of 28 companies from the Buenos Aires Stock Market.<\/li>\n
        • COLCAP<\/strong>: made up of more than 20 companies listed on the Colombian Stock Exchange.<\/li>\n
        • IPSA<\/strong>: located in Chile, it is made up of 40 companies on the said country's stock market.<\/li>\n<\/ul>\n

          Asia<\/h3>\n

          In Asian countries, the leading stock indices are:<\/p>\n

            \n
          • Nikkei 225<\/strong>: located in Tokyo, Japan. Comprised of more than 250 companies listed on the Tokyo Stock Exchange.<\/li>\n
          • Hang seng<\/strong>: Hong Kong Stock Exchange, made up of the 33 main companies on the Hong Kong Stock Exchange.<\/li>\n
          • SSE Composite<\/strong>: located in Shanghai, China. Composed of more than 50 companies.<\/li>\n<\/ul>\n\n\n\n\n\n
            Bibliography:<\/th>\n<\/tr>\n<\/thead>\n
            \n
              \n
            • JM Gonzalez Tudela. Stock indices: economic and financial significance<\/em>.<\/li>\n
            • Jaime Requeijo Gonz\u00e1lez. Economic structure indicators<\/em>. Delta Publications, 2007.<\/li>\n
            • Stock index<\/em>. Retrieved from Wikipedia.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n\n\n
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