Stock market index
Financial metric which investors use to determine market performance
Stock market index
In finance, a stock market index or stock index is an index that measures the performance of a stock market, or of a subset of a stock market. It helps investors compare current stock price levels with past prices to calculate market performance. Two of the primary criteria of an index are that it is investable and transparent: The methods of its construction are specified. Investors may be able to invest in a stock market index by buying an index fund, which is structured as either a mutual fund or an exchange-traded fund, and "tracks" an index. The difference between an index fund's performance and the index, if any, is called tracking error.
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