Finance
What is A stock index?
A stock index measures the performance of a group of stocks, giving a quick snapshot of how a market or sector is doing. Famous examples include the S&P 500 and the Nifty 50 — when people say 'the market is up', they usually mean an index rose.
See it, don’t just read it.
Watch a 2-minute lesson with voice + animation that explains a stock index.
Key things to understand
- 1It tracks a basket of stocks as a single number.
- 2It shows how a market or sector is performing.
- 3Examples: S&P 500, Nifty 50, FTSE 100.
- 4Index funds and ETFs let you invest in a whole index.
Frequently asked questions
- What is a stock index?
- A measure of the combined performance of a group of stocks, used to gauge a market or sector.
- What are examples of stock indexes?
- The S&P 500, Dow Jones, Nasdaq, India's Nifty 50, and the UK's FTSE 100.
- How do you invest in an index?
- Through index funds or ETFs that hold the same stocks as the index, tracking its performance.