The BITS 100 index closes today in negative territory on May 31

Stock index It is an indicator that shows how the value of a particular group of assets has changed.so it uses data from different companies or sectors for part of the market.

These indicators are mainly used by stock exchanges in various countries Each of them can be combined by companies with specific characteristics Such as having a similar market value or belonging to the same type of industry. There are also some indicators that take into account only a handful of stocks to determine their value, or other indicators that take into account hundreds of stocks.

Stock market indices act as Stock market confidence index, business confidence, national and global economic health, and stock investment performance And the entity’s shares. If investors do not have confidence, stock prices tend to fall.

Likewise, they work to measure Asset manager performance Allow investors to compare profitability and risk; Measure financial asset opportunities or create portfolios.

This type of indicator began to be used at the end of the nineteenth century Journalist Charles H. Dao. He carefully investigated how company stocks tended to rise or fall in price together, so he created two indices: one containing the 20 most important railroad companies (because they were the most important industry at the time), plus 12 stocks from other types of companies

Nowadays there are many indicators and They can be linked based on their location, sectors, company size or also asset typeFor example, the US Nasdaq index consists of the top 100 companies mostly related to technology such as Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Facebook (FB), Alphabet (GOOG), and Tesla (TSLA). , Nvidia (NVDA), PayPal (PYPL), Comcast (CMCSA), Adobe (ADBE).

Each stock index has its own way of measuringBut the main factor is the market capitalization of each company that comprises it. This is obtained by multiplying the daily value of the bond on the corresponding stock market by the total number of shares on the market.

Companies listed on the stock exchange are obligated to do so Provide balance Of its composition. This report must be issued every three or six months, as appropriate.

Reading a stock index also requires examining its changes over time. Current indicators always appear at a fixed value based on stock prices On the start date, but not everyone follows this method. Therefore, it can be a source of misunderstanding.

If one index gains 500 points in one day, while another gains only 20 points, it may appear that the first index performed better. However, if the former started the day at 30,000 points and the latter at 300, you can see, in percentage terms, that the gains of the latter were more pronounced.

between the Major US stock indices There is the Dow Jones Industrial Average, commonly known as… Dow JonesOf which 30 companies are part. Likewise, the Standard & Poor’s 500Which includes 500 of the largest companies on the New York Stock Exchange. Finally, we must not forget Nasdaq 100which connects 100 of the largest non-financial companies.

On the other hand, the most important indicators Europe she Eurostock 50, which covers the 50 most important companies in the euro area. On the other hand, the DAX 30It is the main German index that contains the strongest companies on the Frankfurt Stock Exchange. the FTSE 100 index From the London Stock Exchange; he CAC 40 From the Paris Stock Exchange; And the Ibex 35from the Spanish stock market.

in Asian continentwe have the Nikki 225, consisting of the 225 largest companies on the Tokyo Stock Exchange. And there too SSE Composite IndexWhich can be considered the most prominent in China, and consists of the most prominent companies on the Shanghai Stock Exchange. Likewise, it is worth noting Hang Seong Index In Hong Kong and Cosby In South Korea.

We’re talking about latin americaYou have Consumer price indexwhich contains 35 most influential companies on the Mexican Stock Exchange (BMV). At least a third of them are owned by businessman Carlos Slim.

Another is Bovespa, consisting of the 50 most important companies on the São Paulo Stock Exchange; he Merval From Argentina; he IPSA From Chile; he MSCI COOLCAP From Colombia; he cry Caracas, consisting of 6 companies from Venezuela.

Likewise, there are other types of global stock indices such as MSCI Latin AmericaWhich includes the most important 137 companies in Brazil, Chile, Colombia, Mexico and Peru.

Likewise, there MSCI WorldWhich includes 1,600 companies from 23 developed countries; he MSCI Emerging MarketsIt consists of more than 800 companies from developing countries; And the Standard & Poor’s Global 100consisting of the 100 most powerful multinational companies on the entire planet.