Elephlow
FINANCIAL GLOSSARY

Stock market index

An indicator measuring the performance of a group of securities under defined rules.

Definition

An indicator measuring the performance of a group of securities under defined rules.

Why this concept matters

It is a benchmark for tracking a market or comparing portfolio performance.

What to watch

An index cannot be bought directly and its calculation method affects its behaviour.

Simple example

A global index can track companies across many countries and sectors.

← Back to all definitions
Explore the guides →