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Trading glossary · markets

index

One number that tracks a whole group of shares, like a school's average test score for the market.

The fuller meaning

A calculated measure of a basket of securities, such as the Nifty 50, Sensex, S&P 500, Nikkei 225 or TOPIX. Indices summarise a market, anchor circuit breakers and underlie futures, options and index funds; comparing a stock with its index shows relative strength.

index, also called indices.

Related words

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