Question

how do investors use stock indexes

Answer 1

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Each stock index measures the value of a unique section of the stockmarket. ... Indexes provide a way to measure overall market sentiment, andinvestors can track changes in anindex's value over time and use it as a benchmark when evaluating their own portfolios.

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Answer 2

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A stock index or stock market index is a measurement of a section of the stock market. It is computed from the prices of selected stocks (typically a weighted average). It is a tool used by investors and financial managers to describe the market, and to compare the return on specific investments.

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