What is a 'Market Index'?

A market index is a weighted average of a section of the stock market calculated from the price of selected stocks. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

| Term of the Day Market Index A market index is a weighted average of several stocks or other investment vehicles from a section of the stock market, and it is calculated from the price of the selected stocks. Market indexes are intended to represent an entire stock market and track the market's changes over time. Breaking it Down: Market indices measure the value of groups of stocks. If an index goes up one level, or 1%, this means a group of stocks has... Read More » Related to "Market Index" An Introduction to Stock Market Indices Lear more about the five most talked about stock indices and what makes them all different. Read More » How Stock Market Indexes Changed Investing Find out how the first market averages were calculated and what they mean for investors today. Read More » The S&P 500: The Index You Need To Know Just how are companies added to and dropped from the S&P 500, and how is its value calculated? Curious? Read on. Read More » Related Definitions Dow Jones Industrial Average - DJIA The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. Read More » Nasdaq Composite Index The Nasdaq Composite index is a market-capitalization weighted index of the more than 3,000 common equities listed on the Nasdaq stock exchange. Read More » NASDAQ Global Market Composite The NASDAQ Global Market Composite is a stock market index of 1,450 stocks representing the NASDAQ Global Market. Read More » Russell 1000 Index The Russell 1000 Index is an index of approximately 1,000 of the largest companies in the U.S. equity market. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2019, Investopedia, LLC, All Rights Reserved | Privacy Policy