What is an Index?
Indices are a method of measuring the value of a market 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 How do stock markets work? A stock market is a financial ... More indices:
|500 major US companies|
|Index of the The Hong Kong Stock Exchange (SEKH) is one of Asia's leading... More|
Types of indices
In a market-value weighted or The Hang Seng is the leading stock market index in Hong Ko... More, the size of the companies are factored in. Here, a large change in the What 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.-weighted index such as the
In a price-weighted index such as the Dow Jones Industrial Average, the price of each component stock determines the value of the index. Here, theof 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. What are the principles of technical analysis? Technical ana... More can also be applied to trading index funds: