stock index

  

Definition

Statistical indicator used in measurement and reporting of changes in the market value of a group of stocks/shares. Different stock indices (such as Dow Jones Industrial Average, Russell 1000, Standard And Poor's 500) track the market differently--depending on (1) which averaging method is used to establish the index, (2) whether the index is broad based or narrow based, and (3) whether the averaging method assigns weights on the basis of market price or market capitalization. Also called share index.

Use stock index in a sentence

  • The stock index provided us with real time information that allowed us to day trade in an exacting and immediate fashion.

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  • We checked the stock index to see the changes in the market, which we needed to know for future reference.

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  • You should try and get a good break down on the stock index so that you can always know where your finances stand.

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