Index

Index
A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is an imaginary portfolio of securities representing a particular market or a portion of it. Each index has its own calculation methodology and is usually expressed in terms of a change from a base value. Thus, the percentage change is more important than the actual numeric value.

Stock and bond market indexes are used to construct index mutual funds and exchange-traded funds (ETFs) whose portfolios mirror the components of the index.

The Standard & Poor's 500 is one of the world's best known indexes, and is the most commonly used benchmark for the stock market. Other prominent indexes include the DJ Wilshire 5000 (total stock market), the MSCI EAFE (foreign stocks in Europe, Australasia, Far East) and the Lehman Brothers Aggregate Bond Index (total bond market).

Because, technically, you can't actually invest in an index, index mutual funds and exchange-traded funds (based on indexes) allow investors to invest in securities representing broad market segments and/or the total market.


Investment dictionary. . 2012.

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  • Index — Index …   Deutsch Wörterbuch

  • index — [ ɛ̃dɛks ] n. m. • 1503; mot lat. « indicateur » 1 ♦ Doigt de la main le plus proche du pouce (ainsi nommé parce que ce doigt sert à indiquer, à montrer). Les deux index. Prendre un objet entre le pouce et l index. « Levant l index à sa bouche,… …   Encyclopédie Universelle

  • Index — In dex, n.; pl. E. {Indexes}, L. {Indices}(?). [L.: cf. F. index. See {Indicate}, {Diction}.] [1913 Webster] 1. That which points out; that which shows, indicates, manifests, or discloses; as, the increasing unemployment rate is an index of how… …   The Collaborative International Dictionary of English

  • Index.hu — is one of the most popular Hungarian language internet news portals and message boards. It was started in 1995 as Internetto.hu, later renamed Index.hu. The editor in chief and founder of the site was András Nyírő. Currently, the editor in chief… …   Wikipedia

  • Index — Index, der (von lateinisch index: „Zeigefinger, Anzeiger, Übersicht, Titel, Inhaltsverzeichnis“; Plural: Indizes/Indices) steht für: Register (Nachschlagewerk), allgemein ein geordnetes Verzeichnis zu Orientierungszwecken Kennzahl, eine aus… …   Deutsch Wikipedia

  • index — in·dex 1 n: a numerical measure or indicator (as of inflation or economic performance) see also consumer price index index 2 vt: to link (as wages, rates, or investments) to an index under the contract wages were index ed to inflation M …   Law dictionary

  • index — ÍNDEX, (1) indexuri, s.n., (2) indecşi, s.m. 1. s.n. Listă alfabetică sau pe materii pusă la sfârşitul sau la începutul unei cărţi sau apărută în volum separat, cuprinzând materiile, autorii sau cuvintele conţinute în ea, cu indicarea paginilor… …   Dicționar Român

  • index — [in′deks΄] n. pl. indexes or indices [in′di sēz΄] [L, informer, that which points out < indicare, INDICATE] 1. short for INDEX FINGER 2. a pointer or indicator, as the needle on a dial 3. a thing that points out; indication; sign;… …   English World dictionary

  • Index: — INDEX: is a Denmark based nonprofit organization with the purpose to promote designs aimed at the improvement of the life of people worldwide, both in developed and developing countries.[1] It was established in 2002 under the patronage of the… …   Wikipedia

  • Index — In dex, v. t. [imp. & p. p. {Indexed}; p. pr. & vb. n. {Indexing}.] 1. To provide with an index or table of references; to put into an index; as, to index a book, or its contents. [1913 Webster] 2. (Economics) To adjust (wages, prices, taxes, etc …   The Collaborative International Dictionary of English

  • Index — Sm erw. fach. (19. Jh.) Entlehnung. Entlehnt aus l. index (indicis) Register, Verzeichnis, Katalog , zu l. indīcere ansagen, bekanntmachen (die Bedeutung unter Einfluß des Intensivums l. indicāre anzeigen, bekanntmachen ), zu l. dīcere (dictum)… …   Etymologisches Wörterbuch der deutschen sprache

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