What are Stock Indexes?
Stock indexes are a statistical average of a particular stock exchange or sector. Indexes are composed of stocks which have something in common – they are all part of the same exchange; they are part of the same industry; or they represent companies of a certain size or location. Here are many different stock indexes, the most common in the United States being the Dow Jones Industrial Average, the NYSE Composite index, and the S&P 500 Composite Stock Price Index. Stock indexes give an overall perspective about the economic health of a particular industry or stock exchange.
