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

positive opening for ARE 100which opens on Wednesday, March 1 with slight increases in 0.83%until the 5,280.91 points, after the start of the opening session. Compared to previous days, the ARE 100 chains three consecutive days of positive numbers.

Considering last week, the ARE 100 recorded an increase of 4.13%so that in the past year it still maintains a rise of 185.24%. He ARE 100 is located at 6.72% below its maximum this year (5,661.10 points) and a 17.21% 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 stock markets of various countries and each of them can be integrated by companies with specific needs like having a similar market capitalization or belonging to the same type of company, moreover, there are 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. 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 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 see carefully how company stocks tended to rise or fall together in price, he therefore created two indices: one that contained the 20 largest railroad companies (since that was the largest industry at the time), as well as 12 shares of other types of companies

There are currently various indices and They can be grouped according to their geography, their sectors, the size of the company or the type of assetFor 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 component is the market capitalization of each firm that integrates 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 issued every three or six months, as the case may be.

Reading a stock market index also means taking care of its evolution over time. Current indices always start with 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 scores 500 points in one day, while another only scores 20, it may seem that the former performed better. However, if the first started the day at 30,000 points and the other at 300, we can deduce that in percentage terms the gains for the second were considerable.

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, we must mention 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 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. Additionally, there is the SSE composite index, is seen as China’s preeminent, made up of the most important companies on 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 the Latin American regionyou have the IPCwhich contains the 35 Most Powerful 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.

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