Question of the week: What is an Index?
Submitted by nsscadmin on
Every night on the evening news you hear that the market is up or down and rather large numbers and a up or down arrow are slotted in besides the words S&P 500, Dow Jones Industrial Average and S&P/TSX Composite. These are indexes.
Whenever you hear someone talking about the Dow Jones, or S&P/TSX Composite they are talking about an index. The definition of an index in finance is …