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Index (economics)



 
 
In economics
Economics

File:Ballard Farmers' Market - vegetables.jpgEconomics is the Social sciences that studies the Production theory basics, Distribution , and Consumption of Good and Service ....
 and finance
Finance

The field of finance refers to the concepts of time, money and risk and how they are interrelated. Banks are the main facilitators of funding through the provision of credit, although private equity, mutual funds, hedge funds, and other organizations have become important....
, an index is a single number calculated from a set of prices or of quantities. Examples include the price index
Price index

A price index is a normalized average of prices for a given class of Good s or Service s in a given region, during a given interval of time. It is a statistic designed to help to compare how these prices, taken as a whole, differ between time periods or geographical locations....
, quantity indexes (such as real GDP), market performance indexes (such as a labour market index / job Index and stock market index
Stock market index

A stock market index is a method of measuring a section of the stock market. Many indices are cited by news or financial services firms and are used to benchmark the performance of portfolios such as mutual funds....
es). Values of the index in successive periods (days, years, etc.) summarize level of the activity over time or across economic units (regions, countries, etc.).

In financial markets, an index is a customized basket of securities that tracks a particular market or segment.






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In economics
Economics

File:Ballard Farmers' Market - vegetables.jpgEconomics is the Social sciences that studies the Production theory basics, Distribution , and Consumption of Good and Service ....
 and finance
Finance

The field of finance refers to the concepts of time, money and risk and how they are interrelated. Banks are the main facilitators of funding through the provision of credit, although private equity, mutual funds, hedge funds, and other organizations have become important....
, an index is a single number calculated from a set of prices or of quantities. Examples include the price index
Price index

A price index is a normalized average of prices for a given class of Good s or Service s in a given region, during a given interval of time. It is a statistic designed to help to compare how these prices, taken as a whole, differ between time periods or geographical locations....
, quantity indexes (such as real GDP), market performance indexes (such as a labour market index / job Index and stock market index
Stock market index

A stock market index is a method of measuring a section of the stock market. Many indices are cited by news or financial services firms and are used to benchmark the performance of portfolios such as mutual funds....
es). Values of the index in successive periods (days, years, etc.) summarize level of the activity over time or across economic units (regions, countries, etc.).

In financial markets, an index is a customized basket of securities that tracks a particular market or segment. Each index has its own calculation methodology and its own specific process in order to select particular securities. Some companies (S&P, Dow Jones, SG Index, STOXX) have created a lot of indices to replicate different markets or selected industries. S&P is one of the most known index provider with the S&P 500. It offers a wide range of indices like the S&P Asian Index which measures the equity market of a basket of Asian countries (India, China, Hong Kong, Taiwan, Korea and Singapore). Dow Jones Indexes provide a range of indices like the world oldest, and very famous, Dow Jones Industrial Average. It provides also an index which measures the stock performances of 50 leading multinational companies. SG Index, established in 2007, is a new provider of indices who provides data used by a number of financial products. One of the most famous index is the SGI Wise Index, that provides an exposure to European equities.

Consumer price index
Consumer price index

A consumer price index is a measure of the average price of consumer goods and services purchased by households. It is a price index determined by measuring the price of a standard group of goods meant to represent the typical market basket of a typical urban consumer....
es can be used, among other things to adjust salaries, bonds interest rates, and tax thresholds for inflation.

Some investment funds (index fund
Index fund

An index fund or index tracker is a collective investment scheme that aims to replicate the movements of an stock market index of a specific financial market, or a set of rules of ownership that are held constant, regardless of market conditions....
s) manage their portfolio so that their performance mirrors (tracking
Tracking

Tracking can refer to:*Tracking , separating children into different classes according to their academic ability*Tracking, in computer graphics, a vital part of match moving...
) the performance of a stock market index or a sector of the stock market.

Indexes

Provider: Dow Jones
Dow Jones & Company

Dow Jones & Company is an American publishing and financial information firm.The company was founded in 1882 by three reporters: Charles Dow, Edward Jones and Charles Bergstresser....
  • Dow Jones Industrial Average
    Dow Jones Industrial Average

    The Dow Jones Industrial Average is one of several stock market index, created by nineteenth-century The Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow....


Provider: Standard & Poor's
Standard & Poor's

Standard & Poor's is a division of McGraw-Hill that publishes financial research and analysison stocks and Bond . It is well known for its US-based S&P 500, the Australian S&P/ASX 200 stock market index, the Canadian S&P/TSX Composite, the Italian S&P/MIB and India's S&P CNX Nifty....
  • S&P 500
    S&P 500

    The S&P 500 is a market value-weighted index published since 1957 of the prices of 500 market capitalization common stocks actively traded in the United States....
  • S&P 400
    S&P 400

    The S&P 400, more properly S&P 400 MidCap Index, is a stock market index from Standard & Poor's.It covers roughly the mid-cap range of US stocks....
  • S&P 600
    S&P 600

    The S&P 600, more properly S&P 600 SmallCap Index, is a stock market index from Standard & Poor's.It covers roughly the small-cap range of US stocks....
  • S&P 1500
    S&P 1500

    The S&P 1500, or S&P 1500 Composite Index, is a stock market index of US stocks made by Standard & Poor's. It includes all stocks in the S&P 500, S&P 400, and S&P 600....
  • S&P/ASX 200
    S&P/ASX 200

    The S&P/ASX 200 index is a market-capitalisation weighted and float-adjusted stock market index of Australian stocks listed on the Australian Securities Exchange from Standard & Poor's....
  • S&P/TSX Composite Index
    S&P/TSX Composite Index

    The S&P/TSX Composite Index is an index of the stock prices of the largest companies on the Toronto Stock Exchange as measured by market capitalization....
  • S&P Global 1200
    S&P Global 1200

    The S&P Global 1200 index is a free-float weighted stock market index of global equities from Standard & Poor's. The index covers 31 countries and approximately 70 percent of global stock market capitalization....
  • S&P Custom Group of indices


Provider: Russell Investments
  • Russell 1000 Index
  • Russell 2000 Index
  • Russell 3000 Index
  • Russell Midcap Index
  • Russell Microcap Index
  • Russell Global Index
  • Russell Developed Index
  • Russell Europe Index
  • Russell Asia Pacific Index
  • Russell Emerging Markets Index


Provider: Morgan Stanley Capital International
  • MSCI World Index
    MSCI World

    The MSCI World is a stock market index of 'world' stocks. It is maintained by MSCI Inc., formerly Morgan Stanley Capital International.The index includes a collection of stocks of all the developed markets in the world, as defined by MSCI....
  • MSCI EAFE (Europe, Australasia, and Far East) Index
    MSCI EAFE

    The MSCI EAFE is a stock market index of foreign stocks, from the perspective of a North American investor. The index is market capitalization weighted ....


Provider: Reuters
Reuters

Reuters Group Limited is a United_Kingdom-based, Canadian controlled news agency and former financial market data provider that provides reports from around the world to newspapers and broadcasters....
  • Reuters-CRB Commodities Index
    Reuters-CRB Index

    The Reuters-CRB Index is a commodity price index. It was first calculated by Commodity Research Bureau, Inc. in 1957 and made its inaugural appearance in the 1958 CRB Commodity Year Book....


Provider: Markit
Markit Group Limited

Markit is a financial information services company with more than 1,000 employees in Europe, North America and Asia-Pacific. Markit is headquartered in More London....
  • ABX
    Asset-backed securities index

    An asset-backed securities index, or ABX, is a credit derivative instrument with Asset-backed security as an underlying.On January 17, 2006, CDS Indexco and Markit launched ABX.HE, a synthetic asset-backed credit derivative index, with plans to extend the index to other underlying asset types other than home equity loans....
  • CDX
    Credit Default Swap Index

    A credit default swap index is a credit derivative used to hedge credit risk or to take a position on a basket of credit entities. Unlike a credit default swap, which is an Over-the-counter credit derivative, a credit default swap index is completely standardised credit security and may therefore be more Market liquidity and trade at...
     / iTraxx
    Itraxx

    iTraxx is the brand name for the family of credit default swap index products covering regions of Europe, Japan and non-Japan Asia. They form a large sector of the overall credit derivative market....
  • CMBX


See also

  • Stock market index
    Stock market index

    A stock market index is a method of measuring a section of the stock market. Many indices are cited by news or financial services firms and are used to benchmark the performance of portfolios such as mutual funds....
  • Illinois Flash Index
    Economy of Illinois

    The economy of Illinois is highly diverse. The Chicago Chicago metropolitan area is home to many of the nation's largest companies, including Boeing, McDonalds, Motorola, and United Airlines....
  • Producer price index
    Producer price index

    A Producer Price Index measures average changes in prices received by domestic producers for their output. It is one of several price index calculated by national statistical agencies....
  • Bureau of Labor Statistics
    Bureau of Labor Statistics

    The Bureau of Labor Statistics , a unit of the United States Department of Labor, is the principal fact-finding agency for the government of the United States in the broad field of labor economics ....
  • Dow Jones Indexes
    Dow Jones Indexes

    Dow Jones Indexes was formed in 1997 as an entity within Dow Jones & Co. It produces, maintains, licenses and markets indexes as benchmarks and as the basis of investible products such as Exchange-traded fund , mutual funds and structured products....


External links