Question

What do index represents?

Answer 1

Answer:

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Answer 2

Explanation:

An index is an indicator or measure of something, and a numerical measure of change in a securities market is usually referred to in finance. In the case of financial markets, stock and bond market indexes consists of a theoretical investment portfolio reflecting a particular market or segment thereof.

A stock index or stock market index is an indicator of a stock market segment. It is determined from selected stock prices (usually a weighted average). Investors and financial managers use this tool to define the market and assess the return on different investments.