Stock Trading System | What is a Stock Index?

In the fast paced ever-changing world of today’s stock market you need a quick way to analyze and graph the movement from day to day, month to month or year to year. Stock indexes such as the Dow Jones Industrial Average and Standard and Poor’s 500 give you a tool to do just that.

But what exactly is a stock market index? A stock market index is a listing of a group of stocks, and a number to go with them. The number that goes with them is used to track trends in the market, going up or down when the market does.

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