stock index

stock index
An indicator used to measure and report value changes in a selected group of stocks. How a particular stock index tracks the market depends on its composition the sampling of stocks, the weighing of individual stocks, and the method of averaging used to establish an index. Chicago Board of Trade glossary
index like the Dow Jones Industrial Average that tracks a portfolio of stocks. Bloomberg Financial Dictionary

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   A market index is a numerical representation of the way an entire market has performed relative to some 'base' reference date in the past. They are calculated in two ways - weighted or unweighted. Unweighted indices are simple arithmetic or geometric averages. An arithmetic average adds up all the percentage changes in the prices of the constituent stocks and then divides that by the number of stocks in the index. The geometric average is a very precise measurement, calculated by multiplying all the prices of the shares in the index and taking the nth root where n is the number of shares you are averaging. It is much less frequently used than an arithmetic average. In weighted indices, certain stocks carry a greater weighting than others, usually based on their market value or capitalization.

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stock index UK US noun [C] (also stock market index, also share index) FINANCE, STOCK MARKET
a series of numbers that shows changes in the average prices of shares on a particular stock market over time: »

The Nikkei 225 stock index surged 2% last week


The main stock index was down 350 points.

Financial and business terms. 2012.

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Look at other dictionaries:

  • stock index — n: an index that tracks the performance of a particular group of stocks Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • stock index — stock .index n an official and public list of ↑stock prices …   Dictionary of contemporary English

  • stock index — stock ,index noun count AMERICAN BUSINESS an official list of the average price of STOCKS of a particular group of companies on a particular STOCK EXCHANGE …   Usage of the words and phrases in modern English

  • stock index — noun index based on a statistical compilation of the share prices of a number of representative stocks • Syn: ↑stock market index • Hypernyms: ↑index, ↑index number, ↑indicant, ↑indicator • Instance Hyponyms: ↑ …   Useful english dictionary

  • stock index — UK / US noun [countable] Word forms stock index : singular stock index plural stock indexes business American a share index …   English dictionary

  • stock-index option — ➔ option * * * stock index option UK US noun [C] FINANCE, STOCK MARKET ► INDEX OPTION(Cf. ↑index option) …   Financial and business terms

  • stock index futures — Based on stock market indexes, including Standard and Poor s 500, Value Line, NYSE Composite, Nikkei 225, the Major Market Index, and the Over the Counter Index, these instruments are used by investors concerned with price changes in a large… …   Financial and business terms

  • stock index swap — A swap involving a stock index. The other asset involved in a stock index swap can be another stock index (a stock for stock swap), a debt index (a debt for stock swap), or any other financial asset or financial price index . Bloomberg Financial… …   Financial and business terms

  • Stock index option — An option in which the underlying is a common stock index. The New York Times Financial Glossary * * *    A call or put option on a stock index.    ► See also Option …   Financial and business terms

  • stock index option — An option in which the underlying is a common stock index. Bloomberg Financial Dictionary * * *    A call or put option on a stock index.    ► See also Option …   Financial and business terms

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