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← Glossary · Basics

Index

A number that sums up how a group of shares performs, such as the DAX or the S&P 500.

A stock index rolls many individual shares into one number. The DAX holds the 40 largest German listed companies, the S&P 500 about 500 large US companies, the FTSE 100 the 100 largest in London.

An index shows how "the market" as a whole is doing. That helps put moves in context: if a share falls 10 % while its index loses 8 %, the reason is more likely the overall market than the company. You cannot buy an index directly, but you can buy an ETF that tracks it.

Related terms

Not investment advice. Investing carries risk up to total loss.