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Stock indices and their structure

stock index (stock index, bond index) - index, calculated on a representative set of securities traded on the market (Shares, bonds) in order to assess the level and general direction of movement of their value. Stock index - indicator, calculated on a representative set of securities, listed on the stock exchange. A short list of the most famous US stock indices: Dow Jones Industrial Average (DJIA) – calculated based on prices 30 companies “blue chips”. Standard Index & Poor’s 500 (S&P 500) – reflects share prices 500 largest companies. NYSE Composite Index – includes all common shares, traded on the NYSE, is the main indicator, reflecting the situation on the stock exchange. It is also complemented by various indices of individual industries.. Nasdaq Composite Index – includes all companies, traded on Nasdaq. Top 100 NASDAQ Issuers, excluding financial companies, merged into the Nasdaq-100 index. Wilshire Index 5000 – American Stock Exchange AMEX index. Fortune 500 Index - Fortune magazine index. Russell Family Indexes.

How and why the volume on the American stock market is falling?

  Several reasons: ZIRP causes stock market volatility to drop => this is demotivating to actively trade Pension funds under pressure due to low bond yields ETFs took a lot of liquidity into themselves - they passively took stocks and hold them, not trading Brokerage businesses mutate into Asset management. Management turnovers are small, infrequent operations, they take a management fee from the client and live quietly on this money Ordinary people are fed up with stock market scams in recent 15 years. That's dot-coms, the credit crisis. Day trading among private clients in the US has practically ceased to exist. author: Barry Ritholtz Original translation: http://smart-lab.ru/blog/190710.php#comments

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