Equity (Stocks or Shares) Index

A stock index or an equity market index is a measurement of the value of a section of the equity/stock market. It is computed from the prices of selected share prices of companies (Typically a weighted average). An equity index is a tool often used by traders, investors and financial managers & advisers to describe the market, and to compare the return on specific trade or an investment. A ‘national’ index represents the performance of the stock market of a given country or a region and by proxy; it might reflect the investors’ sentiment on the state of its economy. The most regularly quoted market indices are national indices composed of the largest and most liquid companies listed on a particular country’s stock exchanges, such as the U.S S&P 500, the South African JSE Top 40, the U.K’s FTSE 100 and the German DAX 30. More specialized indices can be created to target or track the performance of specific equity sectors or industry groups. At Sandton Capital Markets the selection of best known and recognized national indices are extensive, our clients have access to over 50 highly liquid CFD indices for trading or investing purposes.

By |2018-09-04T13:34:07+00:00September 4th, 2018|0 Comments

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