A stock market index is a composite measure calculated from the prices of a group of securities (the index basket). Its value may be based on the sum of prices or an arbitrary reference number. Additional coefficients are often applied to make index values comparable. The change in an index therefore matters more than its absolute value.
- S&P 500 is a stock market index comprising shares of 500 selected companies with the largest market capitalizations traded on US stock exchanges. The index is owned and compiled by Standart & Poor’s. The S&P 500 index value reflects the combined market capitalization of the companies included.
- Nasdaq Composite is a stock market index comprising all stocks and other financial instruments traded on NASDAQ. It includes more than 3000 companies. Because of its composition, the Nasdaq Composite is considered an indicator of technology stock performance.
- Dow Jones is one of the many indices created by Charles Dow, founder of Dow Jones & Company. It is considered one of the oldest indices and currently includes 30 major US companies.
- US Dollar is an index measuring the US dollar against a basket of six currencies: the euro (EUR), Canadian dollar (CAD), pound sterling (GBP), Swiss franc (CHF) and Swedish krona (SEK). It is calculated using a specific formula with a dynamic coefficient. The initial coefficient was set to 100 when the index launched in 1973.