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Indices
Indices are baskets of stocks, grouped by the industry they belong to, the country or a certain sector of economy. The biggest indexes in the world have a long history in the financial market.
Indices price fluctuations are influenced by many factors like political events, economic data, big shifts in the recent markets, employment rates and inside factors which influence companies.
The majority of highly developed countries have at least one index that represents their economies. For example, the S&P 500 index presents top 500 traded companies in the US. They compress 70% of the total value of the US stock market.
Trading indices requires less capital compared to individual shares and you will be exposed to an entire sector of the economy at once. Because of the composition of the index, risk is better diversified, if a company goes down, another one will compensate it by going up.
Current leading indices
S&P 500 - It stands for Standard & Poor 500 and it includes 500 leading US companies. The index stands for over $ 7.8 trillion and approximately 2.2 billion stocks, which is about 80 percent of available market capitalization.
DJIA - It stands for Dow Jones Industrial Average, presenting the top 30 stocks traded on NASDAQ and NYSE. It was founded by Charles Dow and Eduard Jones in the middle of 1880s.
NASDAQ 100 - It has two separate indices, the one which consists of retail, technology, telecommunications, health and transportation. The second one presents banking, insurance, mortgage and brokerage companies.
FTSE 100 - It stands for Financial Times Stock Exchange. It represents 80% of the market capitalization of the London Stocks Exchange. The FTSE is a share index which shows how British economy is performing.
The EURO STOXX 50 - It represents the 50 largest companies in Europe. It covers stocks from 11 EU member states: Austria, Belgium, Ireland, Italy, the Netherlands, Luxembourg, Spain, Portugal, Finland, France and Germany.
Why trade indices with AlLPHAFINMAN?
The least manipulative asset
- The prices of an index change are related to the price movements of the companies inside the index.
NEWS ARE AS IMPORTANT AS ANALYSIS
Renewable energy, pot stocks top losers as election results leave Wall Street hanging
(Reuters) – Renewable energy and cannabis-related stocks, tipped to gain under a Joe Biden administration, were among the hardest hit on Wall Street on Wednesday,
Uber, Lyft shares jump as California set to pass gig-worker ballot measure
(Reuters) – Shares of Uber Technologies (NYSE:UBER) Inc and Lyft Inc (NASDAQ:LYFT) jumped in premarket trading on Wednesday, as Wall Street cheered the app-based firms’ projected victory
Californians pass proposition to let Uber treat drivers as contractors: projection
(Reuters) – Voters in trend-setting California backed a ballot proposal by Uber and its allies that cements app-based food delivery and ride-hail drivers’ status as
Renewable energy, pot stocks top losers as election results leave Wall Street hanging
(Reuters) – Renewable energy and cannabis-related stocks, tipped to gain under a Joe Biden administration, were among the hardest hit on Wall Street on Wednesday,
Uber, Lyft shares jump as California set to pass gig-worker ballot measure
(Reuters) – Shares of Uber Technologies (NYSE:UBER) Inc and Lyft Inc (NASDAQ:LYFT) jumped in premarket trading on Wednesday, as Wall Street cheered the app-based firms’ projected victory
Californians pass proposition to let Uber treat drivers as contractors: projection
(Reuters) – Voters in trend-setting California backed a ballot proposal by Uber and its allies that cements app-based food delivery and ride-hail drivers’ status as
