Stock Market Indices

Stock market indices are statistics that represent the performance of a group of stocks. They help investors gauge the overall health of the stock market or specific sectors. For example, the Dow Jones Industrial Average tracks 30 major companies, while the S&P 500 includes 500. When an index rises, it indicates that the selected stocks are generally performing well, and when it falls, it suggests poor performance. Investors use indices to compare the performance of their investments, understand market trends, and make informed decisions.