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Investing & the Stock Market vocabulary · Markets & Indices

Index

Meaning in investing & the stock market, with examples

/ˈɪndeks/nounCore term

In investing & the stock market, index means: A number that shows how the prices of a selected group of shares or bonds change over time, used to measure a whole market or sector.

In Turkish: endeks, borsa endeksi

How it is used

News reports say an index rose, fell, closed at a level or hit a record. Well-known examples are the BIST 100, the S&P 500, the Dow Jones and the FTSE 100. Companies are added to or removed from an index; funds track an index.

Example sentences

  1. The BIST 100 index closed the day up 1.8 percent at a record level.

  2. The company will join the index at the next quarterly review.

Common collocations

  • stock index
  • index rose
  • track an index
  • benchmark index
  • index fund
  • benchmarkA standard, usually a market index, against which the performance of a fund, portfolio or investment manager is measured.
  • index fundA fund that aims to match the performance of a market index by holding the same securities in the same proportions, instead of trying to beat it.
  • stock marketThe whole system in which shares of companies are bought and sold, including the exchanges, the investors and the prices they create.
  • ETFShort for exchange-traded fund: a fund that holds a basket of assets, often following an index, and whose units are bought and sold on a stock exchange like shares.
  • market capitalizationThe total market value of a company's shares, calculated by multiplying the share price by the number of shares in issue.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Markets & Indices

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This page explains English vocabulary for learners. It is not financial advice.