The FTSE 100 gains and closes in positive territory on March 16

good session to him FTSE 100 (UK)which closed the session of Thursday March 16 with promotions from 0.89%until the 7,410.03 dots. He FTSE 100 (UK) scored a maximum of 7,458.64 points and a minimum volume of 7,331.49 points. The trading range for the FTSE 100 (UK) between its highest point and its lowest point (maximum-minimum) during this day, it was at the 1.7%.

Compared to last week’s profitability, the FTSE 100 (UK) records a fall 5.96%; On the contrary, last year, it still maintains an increase of 3.27%. He FTSE 100 (UK) is located 7.54% below its maximum this year (8,014.30 points) and a 0.89% above its minimum price for the current year (7,344.50 points).

a stock market index is an indicator that shows how the price of a given set of assets is changingfor which it uses data from different 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 specific needs like having a similar market capitalization or belonging to the same type of industry, furthermore, 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 stock market, business confidence, health of national and global economy and stock investment performance and shares of a company. Generally, if investors are not confident, stock values ​​will 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 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 group together based on 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 firm that integrates it. This is obtained by multiplying the current value of the security on the corresponding stock market by the total number of shares that are in the hands of investors.

Listed companies are required to present a balance sheet of its composition. This report must be submitted every three or six months, as the case may be.

Reading a stock market index also requires examining its evolution over time. New indices always appear with a fixed value based on security prices on their start date, but not everyone follows this method. Therefore, this may lead to inaccuracies.

If one index gains 500 points in one day, while another adds only 20, it may appear that the former has outperformed. However, if the first started the day at 30,000 points and the other at 300, we see that in percentage terms, the gains of the second were more remarkable.

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 not forget 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 continentthe 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 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 the Latin American regionyou have the IPCwhich contains the 35 Most Outstanding 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.

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.