BITS 100 closes its bearish trade on May 29

Stock index It is an indicator that shows how the value of a group of assets has changed.For which data from different companies or sectors in a part of the market is used.

These indicators are mainly used by countries’ stock markets 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 business. In addition, there are 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 company shares. In general, if investors lack confidence, stock prices tend to fall.

Likewise, they work to measure Asset manager performance Allow investors to analyze comparisons between return 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 looked closely at how stocks of companies tended to rise or fall in price together, so he created two indexes: one containing the 20 most important railroad companies (because they were the most important industry at the time), plus 12 stocks from other railroad companies. Business types

Nowadays there are many indicators and They can be grouped based on geography, sectors, company size or also asset type.For 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 calculation methodBut the main factor is the market capitalization of each company that comprises it. This is obtained by multiplying the daily value of securities in the corresponding stock market by the total number of shares traded in the market.

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

Reading a stock index also means being careful about its changes over time. New indices always start with a fixed value based on stock prices On the start date, but not everyone follows this method. Therefore, it may seem misleading.

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 one started the day at 30,000 points and the other at 300, you can see, in percentage terms, that the second day’s gains were greater.

between the Major US stock indices There is the Dow Jones Industrial Average, commonly known as… Dow JonesWhich consists of 30 companies. also, Standard & Poor’s 500Which includes 500 of the largest companies on the New York Stock Exchange. Finally, we must not forget Nasdaq 100which unites 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 continentThe main stock indices are Nikki 225, consisting of the 225 largest companies on the Tokyo Stock Exchange. also, SSE Composite Index, which can be considered the main company in China, which consists of the most relevant companies on the Shanghai Stock Exchange. The same role he played Hang Seong Index In Hong Kong and Cosby In South Korea.

We’re talking about latin americaYou have Consumer price indexwhich contains 35 reputed 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 Ibsa 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.