Stock Market Indices and the Stock Exchange


The analogy of the world stock market can probably be traced to the city market place, where all the rural people bring their goods to trade and sell. Over the centuries this has led to the current stock market. Stock market trading in the United States can be traced back more than 200 years ago, when the colonial government was forced to finance the war by selling government bonds and notes, promising to make a profit later. At the same time the private banks began to raise money by issuing shares, or company shares in order to grow their money. Continuing in 1792, a meeting of twenty-four major traders resulted in the creation of a market known as the New York Stock Exchange (NYSE). Traders have agreed to meet daily on Wall Street to trade in stocks and bonds. The average person also soon realized the value of investing in stocks compared to common assets such as land, house or Gold.

In the stock market the stocks or shares of companies are listed and can be traded i.e. bought or sold. Depending on the economic performance of the company and its financial status and economic situation and investment in the country, where the stock exchange is located, listed shares have a specific market value. These stock prices vary depending on a number of factors including market life, investment status and company performance.

In the stock market we have something called the average price of all listed companies. This is a reference number. Statistically referenced reference number. It is calculated daily. The reference number is the stock indicator of the stock market for the day. This number is variable and has its own volume. In fact if it is drawn on a graph it will show the result of a zig zag. But the middle line between them will indicate that the stock is stable or rising or falling. There is a lot of talk about whether the market has gone up or down. When the market goes up it means that the 'bulls' are active and when they go down the 'bears' catch them.

The stock exchange index number is a summary of the market and the financial health of the nation. Includes the total number of stocks listed. At present some of them have become a signal for the country's financial situation. They are often referred to when investments or national loans have to be made.

Two of the most popular market indicators in the world are Americans. They are the Dow Jones Index and the SP 500 index. Charles H. Dow assumes the Dow Jones Index of 1896. At that point Charles calculated the index in a simple way. He added all stock prices and divided the value by the number of listed shares. Currently the system is a bit more complex and the calculation takes into account the market weight of the stock. And the Index refers to heavy weights i.e. stocks with high value and market capitalization.

Other market indicators are also well known.They include the British FTSE, the CAC 40 of the French republic, the German DAX and the Nikkei 225 of Japan. Among the emerging markets NSE Nifty is significant from India.

Indicates the symbolic number that represents the portfolio of securities listed in the exchange. This number is similar to the benchmark reference used by investors and CAs and financial managers to assess the health status of the country's financial markets. The construction of this equation has also encouraged a large number of investors to choose for the first time to invest in the stock market, despite having very little financial knowledge. Now there are indications of technical, pharmaceutical stocks etc as well. In 1985, the NASDAQ introduced its index to compete with the S&P. The Nasdaq 100 contained a number of companies from the technology sector. The NASDAQ itself has been growing in importance as both computer and internet have taken up technology within people’s homes.

Currently the names of indicators such as the Dow Jones Industrial Average

(DJIA), the S&P 500 and NASDAQ combination are now part of our daily vocabulary. For example, the two most well-known stock market indicators in the United States are the Dow Jones Industrial Average and the S&P 500 index. These are world standards.

Indicators help track market performance. So, if you feel that the S&P 500 has increased by 5%, you know that the stock market (as represented by the S&P 500) has risen by about 5% of the value.

The impact of indicators on investment is huge. This is because these directions from Tokyo to New York have made it very clear all around. Other notable indicators include the DJ Wilshire 5000 and MSCI EAFE (foreign shares in Europe, Australasia, Far East). Each index has its own calculation method and is usually expressed in terms of a change from a base value. Thus, a percentage change is more important than the real number value.

Currently the Standard & Poor's 500 is one of the most well-known indicators in the world. This indicator is a benchmark for many professionals around the world. The challenge for investors right now is not to get reliable market information, but how to use the available information.


Post a Comment

Previous Post Next Post

Contact Form