Glossary

From A to Z all the terms you need to skip the jargon and get started!

Index

An index is a statistical measure that represents the performance of a group of stocks, bonds, or other assets. πŸ“Š

It helps investors to track the overall performance of a specific market or sector and serves as a benchmark for comparing individual investments.

A popular example is the S&P 500 Index, which tracks the performance of the 500 largest publicly-traded companies in the US. πŸ‡ΊπŸ‡Έ

Fun fact: The oldest stock market index, the Dow Jones Industrial Average (DJIA) πŸ“ˆ was created in 1896 by Charles Dow, co-founder of Dow Jones & Company. It initially included just 12 stocks, but now tracks the performance of 30 major US companies.