Financial Index

A financial index is a tool that measures the overall performance of a specific group of stocks, bonds, or other investment assets. Think of it as a performance report for a particular segment of the financial market, providing a snapshot of how that segment is doing over time. For example, the S&P 500 tracks 500 large U.S. companies, giving investors insight into the health and trends of the overall stock market. Indexes help investors compare individual investments against the broader market and make informed decisions.