An index refers to the measurement of a set of shares on an exchange. They indicate how much the entire market or a specific part of the market has moved.
Understanding indices (plural) is important. They act as good indicators of how well an investment is likely to do. Check out how much an index has dropped or gained before deciding what to buy. Indexing is when fund managers copy index movements for their holdings.
The S&P 500, NASDAQ 100 Index, MSCI EAFE Index are all very popular indices.
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