Sunday, September 24, 2017

What Are Stock Market Indexes?


Based in South Jordan, Utah, Allegis Wealth Advisors offers financial planning and services to clients across the country. Through its affiliate Allegis Investment Advisors, Allegis Wealth Advisors offers services including investment management and portfolio review. 

Stock market indexes provide valuable information to investors on market performance. They also provide a benchmark for tracking portfolio performance. A market index is the aggregate value of numerous stocks or investment vehicles. The performance of an index is used as a representation of the performance of an entire market or industry.

Companies that establish market indexes set up specific criteria for determining which securities to include in each index. For example, one index might include securities above a certain market capitalization, while another includes securities within a certain stock price range, and yet another includes companies in a specific industry or location. These criteria are closely monitored and adjusted. 

Widely used market indexes today include Standard & Poor’s 500 Index, the Nasdaq Composite Index, and the Dow Jones Industrial Average.

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