Indices

An index is a statistical composite that measures changes in the economy or in financial markets, indices are calculated from the value of selected equities, and are often expressed in year-on-year or month-on-month percentages. Indexes measure the ups and downs of stock, bond, and some commodities markets, in terms of market prices and weighting of companies within the index, therefore they are a tool used by investors and financial mangers to describe the market, and to compare the return on specific investments.