Beginning of the day of ascent for the Crafty 50which inaugurates the day of Tuesday, March 21 with promotions from 0.7%until the 17,053.35 points, after opening. Regarding the variations of this day compared to previous dates, the Crafty 50 reverses the value of the previous session, in which it ended with a drop of 0.67%, without managing to establish a clear trend recently.
Looking at last week’s data, the Crafty 50 recorded an increase of 0.06%For this reason, over the past year, it has still accumulated an increase of 0.46%. He Crafty 50 is located 6.47% below its maximum this year (18,232.55 points) and a 0.7% above its minimum valuation for the current year (16,934.20 points).
a stock market index It is an indicator that shows how the price of a given set of assets is movingit therefore uses data from different 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 different specificities like having a similar market capitalization or being in the same type of industry, similarly, some indices 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 a company. Generally, if investors are not confident, stock prices tend to fall.
They are also working to measure the performance of an asset manager and they allow investors to have comparisons between 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 study how company stocks tended to rise or fall together, he created two indices: one that contained the 20 largest railway companies (as it was the largest industry at the time) , as well as 12 shares of other types of companies
Today in humanity there are various indices and They can group together based on geography, industries, company size, or even asset classFor 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 factor is the market capitalization of each company that incorporates it. This is obtained by multiplying the daily value of the security on the corresponding stock market by the total number of shares outstanding on the market.
Listed companies are required to present a balance sheet of its composition. This report must be notified every three or six months, as the case may be.
Reading a stock market index also requires analyzing 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 appear that the former has outperformed. But, if the first started the day at 30,000 points, and the other at 300, we can conclude that in terms of percentage, 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, of which 30 companies are part. Likewise, the 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. Him too 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 the asian continentwe have 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 strongest in China, consisting of the most relevant 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 Latin Americayou have the IPCwhich contains the 35 most prestigious companies on the Mexican Stock Exchange (BMV). At least a third of them belong to the capital of 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.
Similarly, 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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