What do stock indexes show?

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Economic Definitions

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What do stock indexes show?

  1. 1. Stock Market Performance What does it indicate?
  2. 2. Stock Performance – In the Aggregate <ul><li>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. </li></ul><ul><li>When stock values, in the aggregate, are rising, we are said to be in a Bull Market. </li></ul><ul><li>When stock values, in the aggregate, are falling, we are said to be in a Bear Market. </li></ul>
  3. 3. Stock Indexes <ul><li>Stock indexes show relative overall values for categories or groups of stocks </li></ul><ul><li>The Dow Jones Industrial Average, in existence since 1896, measures the performance of 30 large corporations </li></ul><ul><li>The Standard and Poor’s 500 gives an overall picture of 500 diverse stocks to depict national economic health </li></ul>

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