This year, the markets have experienced constant volatility. (Infobase)

Start of the bullish day for the AEXwhich inaugurates the day of Friday March 17 with notable increases in the 1.39%until the 737.15 points, after the start of the opening session. By comparing these data with those of past days, the AEX accumulates two consecutive dates in positive numbers.

If we consider the data of the last seven days, the AEX records a fall 0.79%; but over the past year he still racks up an increase of 2.13%. He AEX is located at 4.48% below its maximum this year (771.69 points) and a 4.17% above its minimum valuation for the current year (707.63 points).

a stock market index It is an indicator that shows how the value of a certain set of assets is changingit therefore takes data from several companies or sectors of a part of the market.

These indicators are mainly used by the stock markets of different countries of the world and each of them can be integrated by companies with specific needs such as having a similar market capitalization or belonging to the same industry, furthermore, some indices only consider a handful of stocks to determine their value or others which consider hundreds of stocks.

Stock indices serve as indicator of confidence in the stock market, business confidence, the health of the national and global economy and the performance of stock investments and shares of the company. If investors are not confident, stock prices will tend to fall.

They are also working to measure the performance of an asset manager and allow investors to compare profitability and risk; measure the opportunities of a financial asset or create portfolios.

These types of indicators began to be used at the end of the 19th century after the journalist Charles H. Dow. To carefully analyze how company stock prices tended to rise or fall together, he created two indexes: one that contained the 20 largest railway companies (because it was the largest industry in the era), as well as 12 shares of other types of companies

Currently in humanity there are various indices and They can agglomerate according to their location, their sectors, the size of the company or the type of assetFor example, the American Nasdaq index is made up of the 100 largest companies mainly related to technology such as Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Facebook (FB), Alphabet (GOOG), Tesla (TSLA ), Nvidia (NVDA), PayPal (PYPL), Comcast (CMCSA), Adobe (ADBE).

Each stock index has its own calculation method, but the main component is the market capitalization of each company that incorporates it. This is obtained by multiplying the daily value of the bond in the corresponding stock market by the total number of shares outstanding in the market.

Companies that are in the bag are obliged to present a balance sheet of its composition. This report must be published every three or six months, as the case may be.

Reading a stock market index also means examining its evolution over time. Current indices always start with a fixed value based on security prices on their start date, but not everyone follows this method. Therefore, it can be misleading.

If one index adds 500 points in one day, while another only adds 20, it may seem that the former has performed better. However, if the first started the day at 30,000 points and the other at 300, you can see that in percentage terms the gains for the second were considerable.

Between the major US stock indices is the Dow Jones Industrial Average, better known as the Dow Jones, made up of 30 companies. Also S&P500, which includes 500 of the largest companies on the New York Stock Exchange. Finally, we must mention the Nasdaq 100which includes 100 of the largest non-financial companies.

On the other hand, the most important indices of Europe are the Euro Stoxx 50, which covers the 50 largest companies in the euro area. On the other hand, the DAX 30, the main German index containing the strongest companies on the Frankfurt Stock Exchange; there FTSE100 the London Stock Exchange; he CAC 40 of the Paris Stock Exchange; and the IBEX 35of the Spanish stock exchange.

In Asiathe main stock market indices are the Nikki 225, made up of the 225 largest companies on the Tokyo Stock Exchange. There is also the SSE composite index, which is listed as the most notable in China, consisting of the most important companies on the Shanghai Stock Exchange. Also, it is worth mentioning the Hang Seung Index in Hong Kong and the KOSPI in South Korea.

As it concerns the Latin American regionyou have the IPCwhich contains the 35 most consolidated companies on the Mexican Stock Exchange (BMV). At least a third of them belong to tycoon Carlos Slim.

Another is the Bovespa, composed of the 50 most important companies of the Sao Paulo Stock Exchange; he Merval from Argentina; he IPSA From Chile; he MSCI COLCAP Columbia; he IBC of Caracas, made up of 6 companies from Venezuela.

In addition, there are other types of global stock indices such as the MSCI Latin Americawhich includes the 137 most important companies from Brazil, Chile, Colombia, Mexico and Peru.

Likewise, there is MSCI World, which brings together 1,600 companies from 23 developed countries; he MSCI Emerging Markets, made up of more than 800 companies from developing countries; and the S&P Global 100made up of the 100 most powerful multinational corporations on the entire planet.

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