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

Open continuous session for the ARE 100which opens the session of Thursday 2 March with a variation of 0.2%until the 5,333.41 points, after the start of the opening session. Regarding the previous dates, the ARE 100 add four consecutive days to the upside.

Compared to the profitability of the last seven days, the ARE 100 accumulates an increase of 4.86% and in the last year he again racks up a promotion of 173.17%. He ARE 100 is located 5.79% below its maximum this year (5,661.10 points) and a 18.38% above its minimum price so far this year (4,505.34 points).

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

These indicators are mainly used by the exchanges of each country 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 stock market, business confidence, health of national and global economy and stock investment performance and shares of an entity. If investors are not confident, stock prices will tend to fall.

They are also working to measure the performance of an asset manager and they allow investors to make a comparison 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 analyze how company stock prices tended to rise or fall together, he created two indexes: one that contained the 20 largest railway companies (as it was the most important industry in the era), as well as 12 shares of other types of companies

There are currently various indices and they can be grouped by geographic location, industries, company size, or even asset typeFor 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 way of being measured, but the main factor 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.

Listed companies are required 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 requires observing its evolution over time. New indices always open at a fixed value based on stock prices on their start date, but not everyone follows this method. Therefore, it can be 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. However, if the former started the day at 30,000 points and the other at 300, you can see that in percentage terms the gains for the latter were greater.

Between the main stock indices of the American Union is the Dow Jones Industrial Average, better known as the Dow Jones, made up of 30 companies. Likewise, the S&P500, which includes 500 of the largest companies on the New York Stock Exchange. Finally, 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. Also 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 Asiawe have 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 notable in China, consisting of the most important companies of the Shanghai Stock Exchange. The same role played by 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.

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