Bad day for him Bovespawhich closed the day on Monday March 20 with declines in the 1.04%until the 100,922.89 dots. He Bovespa scored a maximum volume of 102,328.44 dots and a minimum volume of 100,678.84 dots. The trading range for the Bovespa between its highest point and its lowest point (maximum-minimum) during this day, it was at the 1.61%.
Last week the Bovespa marks a decrease of 2.13%therefore, last year, it still maintains a decline of 10.75%. He Bovespa is located 11.68% below its maximum this year (114,270.07 points)
a stock market index is an indicator that shows how the price of a set of assets is changingit therefore collects data from different companies or sectors of a market fragment.
These indicators are mainly used by the stock markets of various countries and each of them can be integrated by companies with certain characteristics like having a similar market capitalization or belonging to the same type of company, there are also some indices that only consider a handful of stocks to determine their value or others that 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 an entity. Generally, if investors lack confidence, stock prices will tend to fall.
They are also working to measure the performance of an asset manager and they 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
Today in our economy there are various indices and They can partner based on their geographic location, industries, company size, or even asset classFor example, the U.S. Nasdaq index is made up of the 100 largest companies with broad technology connections 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 value of the share on the corresponding stock market by the total number of shares that are in the hands of the investors.
Listed companies are required to present a balance sheet of its composition. This report must be issued every three or six months, as the case may be.
Reading a stock market index also requires analyzing its evolution over time. New indices always open at a fixed value based on security prices on their start date, but not everyone follows this method. Therefore, it may seem misleading.
If one index increases by 500 points in one day, while another adds only 20, it may seem that the former has performed better. But, if the first started the day at 30,000 points and the other at 300, we can deduce that in percentage, the gains of the second were greater.
Between the major US stock indices is the Dow Jones Industrial Average, better known as the Dow Jones, of which 30 companies are part. Also S&P500, which includes 500 of the largest companies on the New York Stock Exchange. Finally, we must not forget the Nasdaq 100which associates 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 most important companies of 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 can be considered the most representative of China, consisting of the most important companies of 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 Latin Americayou 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.
Finally, 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.
Melissa Galbraith is the World News reporter for Globe Live Media. She covers all the major events happening around the World. From Europe to Americas, from Asia to Antarctica, Melissa covers it all. Never miss another Major World Event by bookmarking her author page right here.
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