Stock indices. What is a Stock Market Index Value Indices

The most important component of world economic processes is trading on stock exchanges. Their practical results, as a rule, are expressed in the form of special indicators, which are called stock indices. What are the features of their formation? How are they calculated? Which of them can be classified as the most famous and significant in Russia and in the world?

Definition of stock indices

Stock indices, also called stock indices, are composite indicators that show the dynamics of changes in the prices of certain assets or groups - securities, raw materials, derivative financial instruments. As a rule, they are legally connected to the stock exchange on which the respective assets are traded. For example, the RTS stock indices are formed on the basis of the dynamics of buying and selling reflected on the Russian trading platform of the same name. The situation is similar with the indicators of many other exchanges.

Significance of Indices: National Economy

Stock indices have practical significance in a large number of aspects. The largest indicators of the corresponding type, for example, from the same RTS site, are able to speak about the state of the national economy. Simply because, as a rule, assets of enterprises of the same country are traded on stock exchanges that have a residence permit in any state. In the case of the RTS - Russia. Regarding Dow Jones - USA, Nikkei - Japan, etc. If stock indices are falling sharply, it means that things are not going very well in the economy of the country where the trading floor is located. Now the Russian economy is not in the best condition. And this can be traced by analyzing the RTS stock indexes. Over the past year, the assets of most companies have fallen in price by tens of percent. At the same time, there is no direct relationship between stock indices and, say, the country's GDP. Although a very large drop in the relevant indicators, as a rule, is an indicator of a crisis in the state economy, and this, in turn, may well coincide with a decline in GDP.

Indices in trading

Another sphere of practical application of indices is stock trading. This is a whole industry in which people are engaged in trading on a professional basis in the very assets that rotate on the RTS, Dow Jones and other sites. Their goal is to buy assets and resell them at a higher price. Or, having reserved a so-called short position by means of exchange instruments, "sell" them at a higher price in order to "buy" them cheaper after some time and thereby make a profit, which the trading platform will pay. Traders study stock indices and their characteristics in detail, study the factors influencing the dynamics of changes in the values ​​of the corresponding indicators.

Indices for the investor

Another example of the practical usefulness of indices is that they form the investment attractiveness of companies that place shares on stock exchanges. Seeing, for example, that the quotes of a corporation are growing, an investor may decide to invest in its shares, thereby increasing the capitalization of the company. As for the stock indices, considered by the business community as indicators of the state of the national economy of a particular country, they can be a guide for investors assessing the prospects of the market in a particular country.

Types of indexes

There are many reasons for classifying indicators. The main types of stock indices identified by modern analysts are sectoral and composite. The former usually imply calculations for a particular segment of the economy, the latter - indicators based on information on the shares of certain companies. At the same time, composite indices, as a rule, make it possible to get a better idea of ​​the national economy of the country where the exchange is registered.

How indices are calculated

What are the most popular methods for calculating stock indices? Experts identify three main ones:

• calculation of the arithmetic mean;
• method involving a divisor;
• calculation of the geometric mean.

Let's consider each of them in more detail.

The use of such a method as calculating the arithmetic mean implies that the prices of all assets traded on the exchange are simply summed up, and then the resulting figure is divided by the total number of single elements. In practice, stock indices are calculated in this way on the Dow Jones exchange.

The simple arithmetic mean method is calculated as follows: the prices of all assets included in the index are added and divided by the number of assets. This method is the simplest. Its disadvantage is that it does not take into account the weight of each asset. Currently, this method is used to calculate the Dow Jones indexes.

The use of a divisor in the formula implies that the arithmetic mean will be divided by a coefficient calculated in a special way. It is used, as a rule, in order to more clearly display the role of the largest companies in the formation of the index.

When using the method, which uses the arithmetic mean, the prices of the shares that form the stock index are mutually multiplied. The root is extracted from the resulting figure - as many times as it is present on the stock floor.

When did indexes appear?

Most analysts agree that the first stock indexes appeared in the United States. There is evidence that the public acquaintance of the business community with this format of indicators took place on July 3, 1884. Then the founders of Dow Jones & Company, which was engaged in financial analytics, Charles Dow and Edward Jones, in the Customers "Afternoon Letter, published the calculation of the corresponding indices for the largest US transport corporations. Subsequently, this index, called Dow Jones, became one of the most famous and significant in the world .

Russian indices

The largest stock indices in Russia are the RTS already noted above, as well as the MICEX. They began to function in the mid-90s. For a long time, indices were traded on two different exchanges. Now the assets within the framework of both indicators rotate on the joint platform - the MICEX. What are the features of trading on Russian stock exchanges?

Trading on MICEX

The MICEX index includes highly liquid stocks of about 30 largest Russian companies. The corresponding indicator is calculated as the ratio of the total amount of capitalization of securities traded on the floor to the indicator on the initial date, simultaneously multiplied by the value of the index at the same moment.

The peculiarity of the calculation of the indicator on the MICEX is that it is calculated in rubles. The main MICEX index is supplemented by the so-called composite index - MICEX 10, as well as a number of industry indicators - oil and gas, engineering, finance, etc. In addition, the corresponding exchange has so-called capitalization indices - high, standard and basic.

Trading on the RTS

The largest stock indices in Russia are also represented by the RTS indicator. It is considered by many experts as the base for the national stock market. Unlike the MICEX, the capitalization of shares in it is expressed not in rubles, but in US dollars. The index value of 100 is the index for September 1, 1995. That is, if now the RTS indicator is about 800, then this means that the capitalization of assets circulating on the trading floor has grown 8 times.

At the same time, the list of shares used in the calculation of the RTS index may be reviewed every three months. In addition to the main indicator, there is an indicator for assets classified by the exchange's analysts as the "second tier" - RTS-2. There are also sectoral indices. Actually, the very main indicator is calculated on the basis of 50 types of assets of the largest companies in the Russian Federation.

In Russia, special exchange indices may be introduced, including the integration RMX that has been functioning for some time. Its calculation was carried out using figures from the RTS, MICEX, as well as from the MFB site. At the same time, this integration index could be expressed both in US dollars and in rubles.

Major World Indices: North America

Having considered the main Russian stock indices, we will also study the world experience in the aspect of stock trading. As we noted above, the very first indicator of the type in question on the planet is recognized as the one that was based on the calculations proposed by Charles Dow in 1884. The first official version of the Dow Jones index, according to some sources, appeared in 1897, and this indicator acquired a more or less modern look in 1928. Traditionally, this index is considered "industrial", but now it is also formed by the assets of firms operating in the banking sector and in the service segment. In addition to the main indicator, the Dow Jones trading system also provides for the transport index, utility, composite and other indicators.

Among the most popular among stock market analysts are indices compiled by Standard & Poors. These indicators, like many others, are based on the company's market capitalization. The main stock indexes of the Standard & Poors system are the S&P 500 and S&P 100. They are calculated in relation to the securities rates of the largest US companies. In addition, the corresponding system of indices includes more than 90 indicators by industry. A feature of these indicators, noted by analysts, is the universality of the calculation formula for individual segments.

The Nasdaq family of indices is characterized by the fact that its calculation is carried out on the basis of the assets of mainly IT companies - brands producing software, computers, telecommunications equipment, etc. Composite is among the most popular indicators. There is also the Nasdaq 100 indicator, which is calculated based on data on the capitalization of 100 IT market leaders.

What other indexes are popular in the USA? Among them is the Value Line indicator. Its calculation is based on the data of 1700 shares. Using this index as an example, one can see how the formula for calculating indicators based on the geometric mean works in practice.

In neighboring Canada, the main index is the TSE 300. It is based on the results of trading on the stock exchange in Toronto. It is characterized by a fairly wide range of represented sectors of the economy.

Europe

Among the countries with significant historical experience in organizing exchange trading is Great Britain. One of the main indicators operating on the grounds of this state is FT-SE 100. It is calculated on the basis of 100 shares of companies selected by a special commission, which includes financial analysts and journalists from specialized publications. The sample of shares within this indicator reflects about 70% of the total level of capitalization of the entire securities market of the country. Along with the main indicator, the UK also has the FT-SE Mid 250 index. It is calculated on the basis of information about the securities of mid-cap companies, which together form about 20% of the trading volume on the national stock market. However, among these firms are the 250 largest, which follow after the first 100 included in the main index.

Other largest economies in Europe are Germany, France. In the markets of these countries, stock indicators are also formed. In Germany, the main national index is DAX 30. It is complemented by the DAX 100 indicator, as well as one more - CDAX, which takes into account data on 320 types of securities. In France, the key national indexes are CAC 40 as well as CAC General. The first is calculated by analysts of the Paris Stock Exchange in relation to the financial performance of the 40 largest companies. In turn, the CAC General indicator includes data on 250 organizations.

Asia

The most important Japanese index, as we noted above, is the Nikkei. It is characterized by a fairly large number of shares - 225, which rotate on the stock exchange in Tokyo. It is noteworthy that the formula for calculating the Nikkei index is almost the same as that used in the American Dow Jones. Another well-known Japanese market indicator is Topix. It takes into account information on securities that rotate in the first section of the Tokyo Stock Exchange. Other major Asian indicators include Hang Seng, registered in Hong Kong. It is based on quotations of securities of 33 largest companies that are traded on the local stock exchange. Reflects data on approximately 70% of the turnover of the respective trades.

South America

Exchange trading is also developed in South America. Among the noteworthy indices of this region is the Mexican IPC, the main feature of which is the rotation of shares, which are taken into account every 2 months, as well as the revision of their number depending on the level of capitalization. The largest economy in Latin America, Brazil, also has its own stock index - Bovespa. It is calculated on the basis of information on shares from the trading floor in Sao Paulo.

They are highly attractive for trade. The explanation for this is quite simple. Stock indices have many undeniable advantages that allow you to implement various trading strategies: Availability of economies of different countries. High and stability. Effective, even for working with deposits of small volumes. Ability to open both short and long positions. The validity period is unlimited. There are no additional payments or commissions. More than 2,000 stock indices operate worldwide. However, a large volume of transactions is carried out only with individual. Consider the most important European, American and Asian indicators.

The FTSE 100 Index is owned by the FTSE Group, which is owned by the London Stock Exchange and the Financial Times. It is one of the most influential market indicators in Europe and the leading indicator for the UK. The index has been operating since 1984. It is based on the rates of securities of 100 companies that have passed the exchanges and have a high level of capitalization. The FTSE Group includes the company's shares in the calculation only if they are highly liquid and in free float. DAX 30 is the most important and most influential German index. The index has been operating since 1988 and has a great impact on the European economy. Based on stock prices of 30 companies listed on the Frankfurt Stock Exchange. These are the largest companies in Germany, so this instrument is often called the German blue chip index. The companies are highly capitalized, freely floated and highly liquid. The index is the property of Deutsche Börse AG. CAC 40 is France's main stock index. Traded on Euronext Paris. It is based on the securities of 40 large-scale enterprises that operate both in France and abroad (about 63%). The indicator has been operating since 1987. The index is compiled quarterly. To do this, a council gathers and out of 100 companies on the top list of the exchange, the very 40 are selected whose assets meet such criteria as: optimal for portfolio management, relevant for derivatives, free circulation, high level of capitalization, and so on.

United States - the most significant and developed, so it is widely demanded by traders and investors around the world. The Dow Jones Industrial Average has been around for over a century (since 1896). It is one of the most authoritative and cited US indicators. It is based on the securities of the 30 largest companies - "blue chips", which together are a mirror of the entire United States stock market. Initially, it was calculated on the basis of 12 enterprises. Companies included in the Dow Jones index mainly represent the US industry. The shares are traded on the NASDAQ and NYSE markets. The S&P index is no less famous and influential. It is based on the securities of half a thousand largest enterprises. This indicator is more difficult to calculate, but at the same time it is as accurate as possible. The index is owned by Standard & Poor's. The beginning of the indicator is 1957. The index includes companies engaged in manufacturing and services, which is not high. The index allows you to assess the situation in industries and the market as a whole. The composition of the indicator can change up to 50 times per year. The Nasdaq Composite is an index that includes most of the securities listed on the NASDAQ electronic OTC trading system. The advantages are enterprises from the high-tech industry. It is considered the denominator of this area. Works since 1971. The list of companies includes not only American, but also foreign enterprises. is taken into account. At the moment, the total volume is more than $ 6 trillion. AMEX is one of the largest exchanges in North America. Works since the beginning of the 20th century in New York. Several indicators are calculated on this exchange, but the main market index is the most popular. The AMEX indicator has been around since 1983. Based on the securities of 20 leading companies in terms of market capitalization, 15 of which are included in the Dow Jones index. The AMEX Composite (1995), Amex Market Value Index (1973) and AMEX Oil Index (1984) are also well known. The NYSE Composite is used by traders around the world. It is kind of a guide. The index is the most significant on the New York Stock Exchange. Works since 1965. It is based on the securities of 2,000 companies operating both in the US and abroad. The value of all businesses is over $20 trillion. This means that the indicator can show the dynamics of the US economy. The list of the index is presented by companies that have passed the listing of the exchange.

Nikkei is an index listed on the Tokyo Stock Exchange. Based on the securities of 225 Japanese enterprises. Works since 1950. The list includes companies whose securities are sold and bought on the exchange as actively as possible. The listing is updated at least once a year. Hang Seng is Hong Kong's most influential index. Works since 1964. It is based on the securities of 34 largest state companies. The index reflects the dynamics of the country's economy. The list includes companies from various industries. But since 1985, four additional indicators have been calculated on the stock exchange - by areas of activity. KOSPI is one of the main indicators of the Seoul Exchange. This is an analogue of the Dow Jones indicator adapted to Asia. It is based on all securities traded on the exchange, which allows you to track general trends in the economy of North Korea. The list includes 399 enterprises.

Summarizing

Stock indices are intangible but highly liquid. You can trade them using stock options, futures contracts and CFDs. Each of the methods has its own advantages.

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Stock indices are required to measure the total value of shares in the stock market of a group of companies. Typically, stock indices are measured based on the weighted average price of selected stocks. This tool is used by investors and money managers in order to describe the dynamics of the market in question, as well as to compare the return on specific investments.

Major stock indices

Below are the main stock indices of the USA, Japan, Europe, Great Britain, Canada and Russia.

US stock indices

The Dow Jones Industrial Average (DJIA) is one of the oldest and most well-known and widely used indexes in the world. It includes stocks of 30 of the largest and most influential companies in the United States of America.

The Dow 30 accounts for about a quarter of the total value of the US stock market, but the percentage change in the Dow should not be taken as the same percentage change in the entire US market. On the other hand, since the Dow index represents the best-known companies in the US, large fluctuations in this indicator are generally consistent with the movement of the entire market, although not necessarily on the same scale.

S&P 500

The Standard & Poor's 500 stock index is more diverse than the DJIA. It is based on the 500 most traded stocks in the US, which is about 70% of the total value of the country's stock market. In general, the S&P 500 index provides an objective picture of the economic climate in the American market.
Because the S&P 500 is a weighted index, each stock in the index is represented in proportion to the total market capitalization. In other words, if the total market value of all 500 S&P 500 companies fell by 10%, then the value of the index would also fall by 10%. For example, a 10% change in the value of a DJIA stock will not necessarily lead to a 10% change in the value of the Dow30. Therefore, the S&P 500 is used more widely by analysts than the Dow 30.

The S&P 500 index includes companies in various sectors of the economy, including energy, engineering, information technology, healthcare, finance, and consumer goods.

Most investors know that the Nasdaq is a stock exchange where high-tech stocks are traded. The Nasdaq Composite Index is a market capitalization weighted index of all stocks traded on the NASDAQ stock exchange. This index includes several companies that are not based in the US While this index is known for its large proportion of technology stocks, the Nasdaq Composite also includes stocks from the financial, industrial, insurance and transportation industries, among others. The Nasdaq Composite includes firms large and small, but unlike the Dow and S&P 500, it also includes many speculative companies with small market caps. Therefore, its movement usually indicates the performance of the technology industry, as well as investor attitudes towards more speculative stocks.

Wilshire 5000

The Wilshire 5000 Index is sometimes referred to as the “total stock market index” or “common market index” because nearly all US-headquartered publicly traded companies are included in the Wilshire 5000. Includes more than 6,700 companies, which speaks to its diversity and objectivity, however, this indicator is mentioned less frequently than the S&P 500.

Eurozone stock indices

EURO STOXX 50

Stock index of the 50 largest European companies operating within the eurozone countries.

A share index that represents the 30 largest and most liquid German companies that are traded on the Frankfurt Stock Exchange.

UK Stock Indices

FT30 Index

FTSE 100 Index

FTSE MID 250 Index

FTSE 350 Index

Japanese Stock Indices

Nikkei 225

Nikkei 225 Stock Average is the main and most authoritative index of Japanese stocks. It consists of the 225 largest companies in Japan that are traded on the Tokyo Stock Exchange. From 1975 to 1985 it had a different name - Nikkei Dow Jones Stock Average.

Topix (TPX)

Canadian Stock Indices

S&P/TSX60

S&P/TSX Composite Index

S&P/TSX Venture Composite Index

Russian stock indices

The RTS Index (Russian Trading Systems) is the main indicator of the Russian stock market, this index includes the 50 largest companies in Russia (banking, oil production and refining, ferrous and non-ferrous metallurgy, retail trade, cellular communications, chemical industry and pharmaceuticals).

It includes the same list of shares of companies in the RTS index, but the calculation method differs in ruble indicators.

Why are stock indices needed?

The main purpose of creating and calculating a stock index is to enable analysts and stock players to easily characterize the general direction and "speed" of movement of stock quotes of companies in a particular industry.

Indices help to study the relationship in forex, commodity and other markets and the economic environment of companies in the whole country. So, for example, if oil prices fall, then the shares of oil companies will also fall.

Comparison of various indices will help to understand which of the sectors of the economy of a particular country is growing and which is falling.

Also, if you invest in mutual funds or individual stocks, it is important to calculate the dynamics of changes in the profit / loss of your investments in accordance with the market index. So, if your investments consistently underperform the index, then you may need to change your investment strategy.

Stock Indices was last modified: November 21st, 2016 by Forex Advisor

All stock indexes were created so that exchange participants could objectively evaluate information on the market. Therefore, the first indexes carried only an informational function. Indices were usually an indicator of market movement - growth or decline - they showed trends and the speed of market development. These data were also used to analyze and forecast the stock market. Indices are regional, composite, industry and global, and can be used in the currency, stock and commodity markets. But they are more widespread on the stock exchange.

Indexes get their names from the name of the creator, agencies or methodology. World stock indices use mutual funds that invest in stocks of other countries.

S&P 500 Index

The name of the index coincides with the name of the most famous American information and analytical agency Standard & Poor's, which calculates it. The index is formed by the weighted market price of shares of five hundred corporations, of which four hundred are industrial, twenty transport, forty utilities and forty financial companies that are listed on the New York Stock Exchange.
Dow Jones

Dow Jones Industrial Average or Dow Jones is usually calculated based on the stock price of the highest listed thirty American companies. This index is over a hundred years old and is the oldest continuously operating index. Only the companies, their names and number have changed (in 1896 the index was calculated for twelve companies, thirty became after 1928).

At first, the Dow Jones index was calculated as an average of stock quotes. Its original value was 41. Today it is one of the main US stock exchange indices and is more than 13,000 points. The index reflects the conjuncture of the American market and the attitude of the business community to the economic and political state of the country.

MSCI Emerging Markets

The index is used to calculate the index of the stock markets of countries with developing economies. This list includes twenty-six developing countries according to the UN classification, this includes Russia, Argentina, Thailand and Mexico. The index is compiled and published by Morgan Stanley.

All international mutual funds that invest in corporate stocks in emerging countries align their performance with the MSCI Emerging Markets Index.

NASDAQ (Nasdaq)

This is a special stock exchange that specializes in shares of companies producing high-tech products - software, digital electronics, etc. NASDAQ - pronounced Nasdaq - is one of the three key US exchanges of the AMEX and NYSE levels. The exchange trades shares of more than three thousand companies. The Nasdaq Index shows the state of the high-tech industry in the US and the reaction of the business community, which affects the high-tech market.

Tokyo Stock Exchange Index - Nikkei

The Nikkei index is a collection of indexes from Tokyo's key stock exchanges. The most popular index is the Nikkei 225. This index is calculated as the weighted average of the value of the shares of corporations that are most actively sold and bought on the Tokyo Stock Exchange.

The index was created in 1950 and published under the name TSE Adjusted Stock Price Average, and its abbreviated name was coined from the abbreviated name of the newspaper - Nikhon Keizai Shimbun, which calculated it.

FTSE Index (FOOTSIE)

The Financial Times Stock Exchange Index (FOOTSIE) belongs to the London Stock Exchange, which is one of the largest, most respected and oldest in Europe. The index is compiled on the basis of data on the capitalization of companies and includes about a hundred of the largest companies that make up 80% of the British market. The index is updated quarterly and is used as the main indicator of the UK's economic condition and as a benchmark for all financial instruments.

The creators of the index are considered to be the Financial Times newspaper, the Department of Statistics of FTSE International and the London Stock Exchange.

DAX Index

World financial indices have in their list another influential indicator - the DAX Index - an indicator of the German stock exchange. The index is calculated based on the performance of thirty leading German companies from various sectors of the economy. The blue chips on this list are BASF, Lufthansa, Bayer AG, Deutsche Telekom and others.

The DAX index was founded in 1987, its initial indicator is 1000 points. The companies on the basis of whose performance the index is calculated must have shares that have been listed on the stock exchange for at least about three years, must have at least 15% of the shares in free float, belong to one of the key sectors of the German economy, and the shares must be highly liquid and demonstrate a large trading volume.

Thus, an investor who invests in international mutual funds must be guided by world financial indices in order to correctly and competently choose funds for investment.

You have probably heard such names as RTS, MICEX, Dow Jones (Dow Jones), NASDAQ (Nasdaq), etc. more than once. All these abbreviated names are nothing but popular stock indices various global platforms.

To make everything clear to you about what kind of indices they are and what they are “eaten with”, I decided to prepare this general educational material.

Let's start with a general concept of what is market index is a calculated indicator reflecting the general dynamics on a particular stock exchange. But indices can be calculated not only for the market as a whole, but also for its individual segments, i.e. by individual economic sectors or issuers that are involved in the market.

Indices exist not only stock, but also currency, for example, there are dollar, euro, etc. indices.

There are investors who not only from individual market instruments (for example: or forex instruments), but also invest separately in stock indices or trade on them independently.

Stock indices are calculated in several ways:

♦ as the arithmetic average percentage of the working portfolio.

If you look at , you can see the average profitability percentages for one or another part of the portfolio, and despite the fact that some instruments may be in a big loss, the overall result may have a positive trend. But, this method is not perfect, since the value of the assets on the market can be completely different. As a result, the stock index will have different values ​​in percentage and money terms. Although, the American Dow Jones index has been calculated in this way for many years.

♦ as a geometric mean, but this is already a more complex calculation and here you need to remember the basics of mathematics and formulas.

♦ also, the above methods can be calculated not only by simple methods (they are also called unweighted), but also by weighted ones.

It is thanks to weighting (by the value of shares, by the value of the selected stock portfolio, by capitalization, etc.) that the stock index is calculated and it turns out that the index value becomes more balanced, since companies with large assets receive a greater influence on the index than small and medium, respectively.

Stock indices are calculated in order to assess the general situation in the market or in a particular area in a few figures, this helps traders and investors to decide on compiling a portfolio or conducting analytics for buying / selling securities.

What stock indices exist in the world:

In addition to the stock indices of individual countries and segments, there are also general world indices (most of them are American, so there are indices of the same name that also conduct calculations for the American market):

• MSCI World Capital Index, which was introduced by Morgan Stanley over 30 years ago. When calculating this index, securities of about twenty countries of the world are taken into account.

• The World Index, this index is calculated based on all world share prices, and is also divided into several parts by territorial segments (North America, Europe, Asia).

• Stock indices EMFI and EMI are indexes of new emerging markets of the world.

• Russell indexes. There are several of them: Russell 1000, Russell 2000, Russell 3000.

Frank Russell's company calculates them, and the numbers in the name of the index are not in vain. Russell 3000 is calculated based on the prices of 3000 shares of large American companies, Russell 2000 is 2000 of those 3000, but the smallest, and Russell 1000, on the contrary, is the largest.

• The next global stock index is the Dow Jones Global Indexes. Its calculation is based on securities of about 30 countries and more than 2.5 thousand companies from all over the world. It is also divided into several sub-indices, which are considered in the euro area (Dow Jones EURO STOXX) and are divided according to different criteria, ranging from territorial (all of Europe), by success (blue chips, leaders of certain segments, etc.) and Dow Jones STOXX by similar criteria, but already all over the world.

• FTSE World Stock Indices (Efteesye). When calculating each of the indices, the most successful global companies with stable high liquidity in various industries are taken. For example, 50 selected in the financial sector, 40 in the banking sector, 30 in the energy sector, etc., for a total of 11 FTSE indices.

• Another index that can be called popular is the Salomon Brothers SBWEI, as many of the indexes of companies around the world are considered to be.

And of course, this is not all world stock indices, there are others, but the majority of market experts are guided by the listed ones.

If we consider stock indices for individual countries, then there will also be a decent amount of them ...

Russian stock indices:

• MICEX Index (MICEX) - Moscow Interbank Stock Exchange. This main index is calculated based on the prices of transactions for the most liquid securities that are in circulation on this exchange.

Other indices are also calculated on the stock exchange, which are formed based on the segment (oil and gas, metallurgy, electric power industry, etc.) and the MICEX index 10, this is the arithmetic average of 10 liquid companies with the same “weight”.

• RTS Index (Russian Trading System). This index is calculated several times a day and can be called a general indicator of the Russian stock market.

• RBC Composite Index, this index is calculated by the RosBusinessConsulting agency and the result is summed up according to the geometric mean based on the data of the RTS, MICEX and MFB.

These were also popular stock indices, there are several others in Russia (RUX, RUIX, AK&M), but if you write about all of them in detail, then you will have to write a separate post for this topic.

America stock indices:

Some market indices of America are listed in the world section, but nevertheless there are a number of popular ones that are worth writing about, because stock exchanges were founded in America a long time ago, and, accordingly, indices, which are calculated using different methods.

• Again, it is worth remembering the Dow Jones family indices, in particular the Dow Jones 30, which is by far the most popular.

• The second most important and popular S & P 500, traders trading in the stock market are guided by its value. It is considered by companies listed on the New York Stock Exchange.

• The S&P 400 index, summed up with capitalization from data on 400 US industrial companies.

• S & P 100. Its calculation is based on a hundred stocks for which there are option contracts on the Chicago Stock Exchange.

• NASDAQ Composite (Nasdaq) weighted by capitalization and calculated from 3500 enterprises trading in the NASDAQ system. The current market value divided by the market value on the first day of the index.

• NASDAQ 100. This index is calculated in the same way as the Composite, but for 100 companies.

• AMEX index series:

1. AMEX Major Market Index is a stock index of "blue chips" traded on the New York Stock Exchange, usually serves as a benchmark for trading futures contracts.

2. AMEX Market Value Index, calculated including dividends. Weighted by capitalization of companies participating in trading on the American Stock Exchange.

• Wilshire 5000 is a general average index for many US stock exchanges.

Popular stock indices in Asia:

• Japanese Nikkei (Nikkei). This is Japan's main market index, calculated based on the prices of 225 "blue chips" of the Tokyo Stock Exchange.

• No less popular is the Japanese index TOPIX (Topiks), which includes data on all shares of the 1st echelon and it reveals to a greater extent the indicators of the entire country's stock market.

• The Hang Seng Index, China's stock market index, is based on data from the Hong Kong Stock Exchange, 34 major companies participate in its calculation and is calculated by capitalization.

• SSE Composite is also a Chinese stock index, but it is calculated according to the Shanghai Stock Exchange at the daily prices of all shares of the stock exchange.

• The average index of the Korean Exchange for all securities is called KOSPI.

Popular European stock indices:

• There are several indexes in the UK index lineup. The most popular and important one is FT-SE100, calculated as a weighted arithmetic indicator for 100 large companies in the UK, the data on it changes every minute.

• In Germany, the exchange benchmark is the DAX 30 index; for its calculations, data on the securities of the 30 most traded companies of the Frankfurt Stock Exchange are taken.

• In France, the calculation for the main stock index CAC40 is calculated in the same way as for the Dow Jones, the arithmetic average is calculated based on the data of 40 major companies of the Paris Stock Exchange.

There are stock exchanges in Europe in almost every country, respectively, and market indices too, but they are not particularly indicative in the world, so it makes little sense to list them, but other popular stock indices that are calculated in countries on other continents and about which many have heard, you can briefly discuss:

• The Brazilian Bovespa index, which is calculated using the main chips of the São Paulo stock exchange. Due to the unstable economy and inflation, this index "fell" dozens of times.

• The developed country of southern Africa (South Africa) has its own FTSE / JSE Top40 index.

• The Canadian Toronto Stock Exchange has its own TSE300 stock index, which is considered among 14 sectors of the economy. Also S&P/TSX Composite Index, this is a general stock index.

• The continent-country Australia calculates its All Ordinaries Index stock index based on the shares of the Australian Exchange trading, and these are not only the country's shares, but also foreign ones.

Yes, there are many stock exchanges in the world, and there are even more indices, if you talk about all of them, you can even start a separate section in detail, because, as I said, today I made a selection of only the most popular ones, but there are still indices for new emerging markets and common ones among them etc. Everything is calculated in different ways, according to complex selections and formulas, so in fact you can study a lot about this for a long time ...

If you decide to connect your interests with studying and working on the stock market, then you need to study many of the indices regularly, listen to analytical forecasts and learn to navigate by their indicators.

Let's finish for today. See you!

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