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What is Stock Market Index? What are the types of stock market index?

 Stock market index: Index measures the changes in prices of stock in market. The index contain group of shares of different companies which are available for trading purpose in market.

Types of stock indexes:

1.     Dow-Jones Industrial Average: This index contains 30 blue chip US based industrial companies. It includes retail, financial services companies but it doesn't include transport and utility companies. Market capitalization method is not used to measure the performance of a stock in this index.                                                    Name of 30companies which are included in this index: United health group,3M,American express, Amgen, Travelers, Apple, Boeing, Intel, Walmart, Home depot, Walgreens boots alliance, Verizon, Goldman Sachs, Honeywell international, JP Morgan Chase, McDonald's, Microsoft, Proctor &Gamble, Salesforce, Nike. Visa, Johnson & Johnson, Caterpillar, Dow, Disney, Chevron, Merch, Cisco system, Coca cola and IBM.          

2.     S&P 500: Also known as Standard &Poor's 500. It includes 500 largest companies equity of US country. It helps to know the overall performance of US economy. It includes shares of a company’s according to market capitalization and profitability.

3.     NIFTY-50: It is traded in NSE (National Stock Exchange) of India. It includes 50 largest Indian companies stock. National Stock Exchange established on 1976. Te base index value is 1000. The base year is 1975.

4.      Nasdaq Composite: It measures the performance of stock traded on Nasdaq exchange. It contains 3000 shares of companies within and outside of US country.

5.     S&P BSE Sensex: In this index 30 stocks are listed in BSE (Bombay Stock Exchange). The Bombay Stock Exchange established in 1986. It uses market capitalisation method to measure the performance of  stock in this index. The base index value is 100.

6.     Russell 2000: It contains 2000 small capital stock of US based companies. Russell 2000 and Russell 1000 collectively known as Russell 3000 which traded public companies stock.

7.     Nasdaq-100: In this index 100 large capital companies listed in Nasdaq. It uses modified weighted method to measure the stock performance.

8.     DAX: It is a German stock index. It is known as Deutscher Aktien index 30. It includes 30 German companies stock which is traded on Frankfurt Stock Exchange. It was launched on 30 December 1987 and the base value is 1000.

9.     Nikkei 225: It consist 225 stocks which traded on Tokio Stock Exchange. It uses price weighted equity index to measure the performance of the stock.

10.   NYSE Composite: It is traded all common stock listed in New York Exchange. It uses float adjusted market capitalisation weighted method to measure the performance of stock. It includes American Deposit Receipts, IRETS and foreign companies stock.

11.  S&P 100: In this index 100 US large capital companies are included in it.

12.  Nifty 100 index: The diversified stocks of 100 companies are included in it.

13.  Nifty 200 index: It include the stock of 200 companies which show the performance of stock in market. It represent 86.7% free float market capitalisation of stock listed in National Stock Exchange.

14.   Nifty 500 index

15.    Nifty Midcap 100 index

16.    Nifty Midcap 50 index

17.    CSI 300 Index

18.    S&P 400

19.    SSE Composite

20.   S&P 600

21.   S&P 1500

22.   Nifty Microcap 250 index

23.   Nifty Midcap Select index

24.   IBEX 35

 

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