Diversify your portfolio with stock indices
Stock Indices
Stock indices are a fundamental tool for
investors looking to diversify their portfolios and follow market trends.
Our Stock Indices section offers a detailed guide on what the
indices, how they work and how you can use them to improve your trading strategy.
investment.
What are Stock Indices?
Stock indices are indicators that measure the performance of a specific group
of stocks, representing a particular sector, market or economy. Some of the
The most well-known indices worldwide include the S&P 500, the Dow Jones Industrial
Average, the NASDAQ Composite, the FTSE 100 and the Nikkei 225. These indices provide
an overview of the economic health and performance of financial markets.
Characteristics of Stock Indices
Representativeness:Each index is made up of a selection of
stocks that represent a specific sector or market. For example, the S&P 500 includes
500 of the largest companies in the United States.
Diversification:When you invest in an index, you are investing in a
diversified set of stocks, which reduces the risk associated with investing in
a single company.
Weighted Rating: Most indices are weighted by
market capitalization, meaning larger companies have a higher
impact on the value of the index.
Market Reference: The indices serve as a reference to evaluate
the performance of other investments, allowing investors to compare their portfolios
with the general market.
