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What do stock indexes show?
What do stock indexes show?
What do stock indexes show?
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What do stock indexes show?

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Economic Definitions

Economic Definitions

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  • 1. Stock Market Performance What does it indicate?
  • 2. Stock Performance – In the Aggregate
    • Stocks, when viewed as a whole market and not in the individual sense, can give an overall indication of the relative health of an economy.
    • When stock values, in the aggregate, are rising, we are said to be in a Bull Market.
    • When stock values, in the aggregate, are falling, we are said to be in a Bear Market.
  • 3. Stock Indexes
    • Stock indexes show relative overall values for categories or groups of stocks
    • The Dow Jones Industrial Average, in existence since 1896, measures the performance of 30 large corporations
    • The Standard and Poor’s 500 gives an overall picture of 500 diverse stocks to depict national economic health

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