What is an Index?
Indices are a method of measuring the value of a marketWhat are value stocks? A value company is a company that app... More segment. The best-known indices measure the performance of . An index is a mathematical construct, so you cannot invest in it directly. However, there are that attempt to resemble the development of indices.
Some important stock marketHow do stock markets work? A stock market is a financial ... More indices:
| Index | Follows |
|---|---|
| 30 major companies | |
| 500 major US companies | |
| 30 major companies | |
| Most important index | |
| Index of the Hong Kong stock exchangeThe Hong Kong Stock Exchange (SEKH) is one of Asia's leading... More |
Types of indices
In a market-value weighted or -weighted index such as the Hang Seng IndexThe Hang Seng is the leading stock market index in Hong Kon... More, the size of the companies are factored in. Here, a large change in the priceWhat are value stocks? A value company is a company that app... More of the largest component of the index can result in a relatively large change of the index value.
In a price-weighted indexIn a price-weighted index, the index is influenced by the in... More such as the Dow Jones Industrial Average, the priceWhat is price? The price is the measure of the value of good... More of each component stock determines the value of the index. Here, the of even a small single company can strongly influence the index.
Trading stock market indices
Trading index funds work on the same underlying principles as trading stocks. Here at tradimo, we will add plenty of lessons on stocks trading in the future. Technical analysisWhat are the principles of technical analysis? Technical ana... More can also be applied to trading index funds:
