A <a< a> href=S tock_Marke t>s< a>tock market<a> <a < a href="">href< a>=Index >index< a> i s a measurement of < a href="">the < a>value of a sec< a>tion of t he <a href=Sto ck_Ma< a href="">rket< a>>stock m arket<a>. It < a>is calcul ated from the prices of < a href="">select< a>ed stocks , whi ch are weighted acc ordi ng to their market < a href="">capi< a>tal< a href="">izat< a>ion.
A <a< a> href=S tock_Marke t>s< a>tock market<a> <a < a href="">href< a>=Index >index< a> i s a statistical mea sure of the p erformance of < a>a group of sto< a>cks, ty< a href="">pica< a>lly a mar ket o r a sector. It is calcu< a>lated fro m the prices of selected s< a href="">tock< a>s (typically a weig< a href="">hted< a> average). It is a tool u sed b y investo< a>rs and fin anci al manage< a>rs to desc ribe the market, and to compa< a>re the ret urn < a>on specific investm ents .<br>< a href=""><br>< a>The most common <a href=< a href="">Stoc< a>k_Market>stock mar ket< a> indic< a>es are the Dow< a> Jo< a href="">nes < a>Industrial Average < a href="">(<a < a>href=DJ IA>D JIA<< a href="">a>),< a> the <a hr ef=< a>S &P_500>S&< a href="">P 50< a>0<a>, an d the <a href=Nasdaq>< a href="">Nasd< a>aq<a> Composite< a>. The <a h< a href="">ref=< a>DJIA>D JIA<a> is< a href=""> a price-weig hted avera< a href="">ge o< a>f 30 signifi cant stocks traded on t< a href="">he N< a>ew York St ock < a>Exchange and the <a< a href=""> href=< a>Nasdaq> Nasd aq<a< a href="">>. T< a>he <a href =S< a>&P_500>S&P 500<a> is < a>a marke< a>t-cap wei ghted <a href=< a>Index>i ndex <a> of 500 large-c ap s< a>toc ks t< a>raded on the N ew York Stock Excha nge < a>and the < a hre f=Nasda< a>q< a>>Nasdaq<a>. The <a< a href=""> hre< a>f=Nasda q>Na sdaq<< a href="">a> < a>Composite is a market-cap < a href="">weig< a>hted <a h ref= Inde< a href="">x>i< a>ndex<a> of al l stocks traded on < a href="">the <a href=Na< a href="">sdaq< a>>Nasdaq<a>.<br>< br><a href< a href="">=S< a>tock_Market>Stock market<a> i ndic es are used to meas< a href="">ure < a>the perfo rmance of a parti cula r market or sector. The< a>y are als o use d to compare the pe< a href="">rfor< a>ma nce of different ma rket s or sectors. For e< a href="">xamp< a>le, the < a hre f=S&P_500< a>>S&P 500< a> < a>is often used to compar< a>e the perf orma nce of the US <a href=St< a href="">ock_< a>Market>stock marke t<a > to =>other markets < a href="">arou< a>nd the < a>world.<br< a>><br><a h ref= Stoc< a href="">k_Ma< a>rket>Stock market< a> < a>indices< a> are also used to measure the per< a href="">form< a>ance of a part icula< a href="">r st< a>ock or grou< a>p of stock s. F< a>or example, the Dow< a href=""> Jon< a>es Indust rial Avera< a href="">ge i< a>s o< a href="">ften< a> used to m easu re the performance of t< a>he 30 sto cks t hat make up< a> the <a hr ef=< a>Index>index<a>. Simi larly< a href="">, th< a>e <a href= S&< a>P_500> S&P 500<< a>a> is ofte n us< a>ed to mea sure the perfo< a>rmance of the < a>500 stocks that make < a href="">up t< a>he <a href =Aš< a>ndex>index<a>.<b r><br>In a< a href="">ddit< a>ion to measuring < a href="">the < a>performance of a partic< a>ular mark et or sector, <a< a> href=St ock_ Marke< a href="">t>s< a>tock mark et<a> ind< a href="">ices< a> can also be u< a>sed to measu re t< a>he performance of a< a href=""> par< a>ticular s tock or group of stocks. For example, th e <a< a> href=S &P_500>S&< a href="">P 50< a>0<a> is o ften used to mea< a href="">sure< a> the perf ormance of< a href=""> the< a> 500 stock s th< a>at make u p the <a href=< a>Index>in dex<a>. S< a href="">imil< a>arly, the <a h ref=Nas< a>daq>Nasd aq<a> Com< a href="">po site is often used < a href="">to m< a>easure th e per forma< a href="">nce < a>of all sto cks < a>traded on the <a href< a href="">=N< a>asdaq>Na sdaq<a>.< br>< br><a< a href=""> hre< a>f=Stock _Market>Sto< a>ck market <a> indic< a href="">es a< a>re import ant t ools for investors and < a>fi nancial ma< a href="">nage< a>rs. They provide a way to measure the< a> performance of a par< a href="">ticu< a>lar market or secto< a href="">r, a< a>nd to comp are < a>the performance of < a href="">differ< a>ent marke ts or sectors.< a> They also pro< a>vide a wa y to < a>measure the perf orman< a href="">ce o< a>f a partic ular stock or group of stoc< a>ks.