Comments on: what is stock index composite? http://www.andersoncompositesquadron.org/composite-stock/what-is-stock-index-composite/ Sat, 04 Feb 2012 06:21:59 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: StopSpending http://www.andersoncompositesquadron.org/composite-stock/what-is-stock-index-composite/#comment-206 StopSpending Tue, 29 Sep 2009 08:37:59 +0000 http://www.andersoncompositesquadron.org/composite-stock/what-is-stock-index-composite#comment-206 A stock index is, essentially, way of a tracking the performance of a portfolio of stocks. For instance, the Dow Jones Industrial Average tracks the performance of 30 large US stocks. There's some complicated stuff to learn about indexes. (The are adjusted whenever stocks are put in or taken out of the index and most ignore any dividends that are paid.) However, the goal of an index is to track the performance of a particular portfolio. The Nasdaq composite tracks the performance of all of the stocks that trade on the Nasdaq exchange. Essentially, an index let's you answer the question, "How did the market do today?" for the particular part of the market tracked by that index.<br><b>References : </b><br> A stock index is, essentially, way of a tracking the performance of a portfolio of stocks. For instance, the Dow Jones Industrial Average tracks the performance of 30 large US stocks. There’s some complicated stuff to learn about indexes. (The are adjusted whenever stocks are put in or taken out of the index and most ignore any dividends that are paid.) However, the goal of an index is to track the performance of a particular portfolio. The Nasdaq composite tracks the performance of all of the stocks that trade on the Nasdaq exchange.

Essentially, an index let’s you answer the question, "How did the market do today?" for the particular part of the market tracked by that index.
References :

]]>