3.4 Stock market indices

Stock market indices, also known as stock indices or share indices, are statistical measures that track the performance of a specific group of stocks or the overall stock market. They provide a benchmark to assess the performance of a particular market, sector, or segment of stocks. Here are some of the commonly known stock market indices:

1. S&P 500: The Standard & Poor’s 500 Index is a widely followed U.S. stock market index that includes 500 large-cap companies listed on major U.S. stock exchanges. It represents about 80% of the total U.S. stock market capitalization.
2. Dow Jones Industrial Average (DJIA): The Dow Jones Industrial Average is a price-weighted index that tracks the stock prices of 30 large, well-established companies listed on U.S. stock exchanges. It is one of the oldest and most recognized indices in the world.
3. Nasdaq Composite: The Nasdaq Composite Index includes more than 3,000 stocks listed on the Nasdaq Stock Market. It is known for its focus on technology companies but also represents various other sectors.
4. FTSE 100: The Financial Times Stock Exchange 100 Index, commonly referred to as the FTSE 100, is a benchmark index of the 100 largest companies listed on the London Stock Exchange. It represents the performance of the UK’s leading blue-chip companies.
5. DAX: The DAX is the benchmark stock market index of the Frankfurt Stock Exchange in Germany. It tracks the performance of the 30 largest and most actively traded companies listed on the exchange.
6. CAC 40: The CAC 40 is the benchmark index of the top 40 companies listed on Euronext Paris, representing the French stock market.
7. Nikkei 225: The Nikkei 225 Index is a stock market index that tracks the performance of 225 large, publicly traded companies listed on the Tokyo Stock Exchange. It is one of the primary indices for the Japanese stock market.
8. Shanghai Composite: The Shanghai Composite Index tracks the performance of all A-shares and B-shares listed on the Shanghai Stock Exchange in China.
9. Hang Seng Index: The Hang Seng Index is the benchmark index of the Hong Kong stock market, representing the performance of 50 companies listed on the Hong Kong Stock Exchange.
10. S&P/ASX 200: The S&P/ASX 200 is the primary stock market index of the Australian Securities Exchange (ASX), consisting of the 200 largest publicly listed companies in Australia.