Stock Market Indices – Information to Help Investors
There are four widely used global stock indexes which are – Dow Jones Industrial Average, Standard & Poor’s 500, NASDAQ and MSCI. Most of the trade in these stocks is via online brokerage firms, which keep all the world stock prices in their database. They also provide stock market reports to help investors know more about different stock market indices.
The market index is based on the value of stocks of various companies. All these stocks are divided into sectors. A sector is subdivided into larger groups of different companies. These are called segments.
An I-PEG is the I-POWER global index. This is comprised of the smallest securities (Micro Cap and Micro), also called I-PEGs. They are the most common and popular of the many other trade options available in the market.
The ISDAE/Markit Index and the ISI (Index of Services Prices) is used by many brokerage firms to determine the market price for shares in the country. The markets from this index are broken down into three groups. These are:
The S&P/Small Cap Market Index is comprised of the entire small cap stocks (or companies that trade above $5 million) in the US. The S&P Small Cap Index is made up of stocks from the top 25 small cap stocks that trade on the New York Stock Exchange. S&P Select Market Index is also made up of the top 25 small cap stocks on the New York Stock Exchange, but the main difference between this and the S&P/Small Cap Index is that the Select Market Index is comprised of companies from the USA, rather than the Middle East.
The S&P/CMI (Standard & Poor’s/Compact Mgt) is the market value index for stocks from Europe, Asia and Australia. It is basically comprised of the most common and largest stocks available in the developed markets. It does not have as much information as the other two indexes, as it does not include the large cap stocks, rather it only focuses on the smaller caps.
The NASDAQ/Daily Yield Indices and the Dow Jones/Case-Shiller Home Price Indexes are composed of all the common stocks in the US. These are found in the Dow Jones Industrial Average and are broken down into different segments depending on the sector. The Dow Jones Home Price Index is for only housing and provides information about the prices of property owned by individuals or companies.
The Index of Services Indices is composed of services that are traded on the Stock Exchange. The ETFs or exchange traded funds are formed in a way where they are one large fund. These are better for investors because they are managed by professional investment advisers.
The European Indices of EBITDA and Bank Indexes are composed of stocks from European countries. These are the most common of the stock market indexes because they focus on larger companies. They include also some sub-indices such as the Euro Stoxx 50, Euronext, etc.
The HSBC Global Composite is composed of the highest yielding and least risky stocks in the same country. Most of the global stock indexes are based on the areas that many investors want to invest in, which are USA, Canada, UK, Australia, Germany, France, Japan, China, India, Taiwan, Russia, and Mexico.
The internet offers reliable financial information. It offers guides to investment and trading, along with the source of financial information and stock information. It also provides the most suitable type of stock for your investments.