Indices

Most of us know the names of global indices, but not all know what they are or understand how an index works. An index not only can be analyzed, but it can also be traded. An Index is a group of companies from the same industry, coming into the market under one name. Indices are sometimes also called indexes, but they mean the same asset.

What is a stock index?

The stock index shows the value of a group of stocks from one sector, country, or region, and it is used to measure the overall performance of the ‘place’ it is coming from. The FTSE100 represents 100 companies from the London Stock Exchange, with the largest market capitalization. The first index was created in May 1896, by Charles Dow. It contained that time 12 most significant companies of the US, and today this index includes the 30 largest companies in the US.

Which indices are the most popular?

The New York Stock Exchange (NYSE)

This index is the world’s largest stock exchange, containing around 3,000 stocks.

The Dow Jones Industrial Average (DJI30)

The Dow Jones index contains 30 US companies: Goldman Sachs, JPMorgan Chase, Johnson & Johnson, McDonald’s, Merck, Microsoft, Nike, Pfizer, Procter & Gamble, 3M, American Express, Apple, Caterpillar, Chevron, Cisco, Coca-Cola, DuPont, Exxon Mobil, General Electric, Travelers, UnitedHealth Group, United Technologies Corporation, Verizon, Visa, Walmart, and Walt Disney.

Nasdaq

The Nasdaq 100 includes the 100 largest companies in the technology sector in the US. Some of the stocks you have for sure heard about are: Adobe, Advanced Micro Devices, Alphabet Inc., Amazon.com, Micron, Microsoft, NVIDIA , Netflix, Tesla, Amgen, Apple Inc., Autodesk, Cisco, Citrix, Ebay, Expedia, Facebook, Hasbro, Intel, Intuit, Marriott, Micron, Microsoft, NVIDIA , Netflix, Tesla, Workday, and more.

S&P 500

The S&P 500 shows the performance of 500 large companies on US stock exchanges. Some of these include: Harley-Davidson, Hewlett Packard, Hilton, Intel, Johnson & Johnson, JPMorgan, Mastercard, McDonald’s, Nike, Oracle, PayPal, PepsiCo, Salesforce, Starbucks, Twitter, Visa, Walmart and more.