Index

An index is a financial instrument that measures the performance of a group of securities, such as stocks, bonds, or commodities. It is used to track the performance of a particular market or sector, and is often used as a benchmark for investors to compare their own investments against. Indexes are typically composed of a basket of securities that are weighted according to their market capitalization, or the total value of the company’s outstanding shares. The performance of an index is determined by the performance of the underlying securities, and is often used as a measure of the overall health of the market.

History of Indexes

The first index was created in 1884 by Charles Dow, the founder of Dow Jones & Company. The Dow Jones Industrial Average (DJIA) was created to track the performance of the 30 largest and most influential companies in the United States. Since then, indexes have become increasingly popular as a way to measure the performance of a particular market or sector. Today, there are hundreds of indexes that track the performance of stocks, bonds, commodities, and other financial instruments.

Comparison Table

Summary

Indexes are financial instruments that measure the performance of a group of securities, such as stocks, bonds, or commodities. They are typically composed of a basket of securities that are weighted according to their market capitalization, and are used to track the performance of a particular market or sector. The first index was created in 1884 by Charles Dow, and since then, indexes have become increasingly popular as a way to measure the performance of a particular market or sector. For more information about indexes, visit websites such as Investopedia, Yahoo Finance, and Bloomberg.

See Also

• Stock Market Index
• Bond Index
• Commodity Index
• Market Capitalization
• Dow Jones Industrial Average
• S&P 500
• NASDAQ Composite
• Mutual Fund
• Exchange Traded Fund
• Portfolio

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