positive opening for Nasdaq 100which begins the session on Thursday, March 9 with slight increases in the 0.47%until the 12,272.83 dots, after opening. If we compare the data with the previous days, the Nasdaq 100 adds two successive dates in positive numbers.
Referring to last week’s profitability, the Nasdaq 100 gets a promotion from 1.89%; but last year, there is still a decrease in the 7.5%. He Nasdaq 100 is located at 4.14% below its maximum this year (12,803.14 points) and a 14.26% above its minimum valuation for the current year (10,741.22 points).
a stock market index is an indicator that shows how the value of a given 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 the countries and each of them can be integrated by companies with specific needs like having a similar market capitalization or belonging to the same industry, moreover, there are some indices that only consider a handful of stocks to determine their value or others that consider hundreds of stocks.
Stock market 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 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
Currently, in humanity, there are various indices and They can join a union depending on their location, their sectors, the size of the companies or the type of assetFor 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 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 on the corresponding stock market by the total number of shares that are on 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 means taking care of its variations over time. New indices always start with a fixed value based on security prices on their start date, but not everyone follows this method. It can therefore be a source of misunderstanding.
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 first started the day at 30,000 points, and the other at 300, we can conclude that in percentage terms the gains for the second were greater.
Between the major US stock indices 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 comes 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. 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 the asian continentwe have 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 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.
In addition, 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.