Thursday, August 10, 2006

Indexes

My article about stock pricing made me think that maybe some clarification about what an Index is could be a good idea.

An Index is an indicator of some category of instruments. This indicator is calculated by averaging the observed price of these given instruments. The choice of the instruments to be part of the index is very broad, you can have indices by industries (IT, Banking, Pharmaceutical, ...), by instrument type (Raw oil index, ...) or any other thing.

The interesting thing is that an index can be bought and sold. It is equivalent to buying a portfolio that will be always composed with the same logic like the index.

2 Comments:

At 4:08 PM, Blogger Web Hook said...

Great and nice blog. It's also very interesting. We also Sell cars.

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At 4:09 PM, Blogger Web Hook said...

Great and nice blog. It's also very interesting. We also Sell cars.

Please visit our website: http://www.webhookmarketing.com/

 

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