Start the day on the way up for Nice 50which opens on Wednesday, October 25 with small increases in the 0.15%till 19,311.25 points, after the start of the opening session. With respect to earlier dates Nice 50 puts an end to four sessions of flat trend.
Compared to the last seven days, it has Nice 50 registers a drop-in 2.53%; although in the last year it still maintains an increase in 10.43%. He Nice 50 if one is located 4.36% below its maximum this year (20,192.35 points) and a 13.96% above its minimum price for the current year (16,945.05 points).
A stock index It is an indicator used to know the development of the value of a certain set of assetsso it uses data from different companies or sectors in a part of the market.
These indicators are mainly used by the stock exchanges of various nations and each of them can be integrated by companies with specific requirements having a similar market value or belonging to the same type of company Likewise, there are some indices that only take into account a handful of stocks to determine their value or others that take into account hundreds of stocks.
Stock market index serves as indicator of stock market confidence, business confidence, the health of the national and global economy and stock investment performance and shares in a company. In general, if investors lack confidence, stock prices will tend to fall.
They also work for measuring performance of an asset manager and allow investors to compare profitability and risk; measure the possibilities of a financial asset or create portfolios.
This type of indicators began to be used in the late 19th century after journalist Charles H. Dow. carefully studied how company stocks tended to rise or fall together, so he created two indexes: one containing the 20 main railroad companies (since that was the most important industry at the time), as well as 12 stocks of other types of companies
At the moment in humanity there are various indices and They can associate based on their geography, sectors, company size or even the type of assetFor example, the US Nasdaq index consists of the 100 largest companies largely related to technology such as Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Facebook (FB), Alphabet (GOOG), Tesla (TSLA ), Nvidia (NVDA), PayPal (PYPL), Comcast (CMCSA), Adobe (ADBE).
Each stock index has its own way of calculation, but the main factor is the market value of each company that includes it. This is achieved by multiplying today’s value of the security on the corresponding stock market by the total number of shares held by the investors.
Companies listed on the stock exchange are obliged to present a balance sheet of its composition. This report shall be published every three or six months, as appropriate.
Reading a stock index also requires paying attention to its development over time. New indexes always start with a fixed value based on share prices on your start date, but not everyone follows this method. Therefore, it can be misleading.
If one index sees an increase of 500 points in one day while another only adds 20, it may appear that the first had a better return. However, if the first started the day at 30,000 points and the second at 300, it can be assumed that the gains for the second were percentage-wise larger.
Between major US stock indices There is the Dow Jones Industrial Average, better known as Dow Jones, which consists of 30 companies. Likewise is S&P 500, which 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 index for Europe is Eurostoxx 50, which covers the 50 most important companies in the eurozone. On the other hand DAX 30, the main German index containing the strongest companies on the Frankfurt Stock Exchange; that FTSE 100 from the London Stock Exchange; he CAC 40 from the stock exchange in Paris; and IBEX 35from the Spanish stock market.
IN Asiaare the most important stock indices Nikkei 225, which consists of the 225 largest companies on the Tokyo Stock Exchange. There is also SSE Composite Index, is seen as the most important in China, consisting of the most prominent companies on the Shanghai Stock Exchange. Likewise, it is worth mentioning Hang Seung Index in Hong Kong and KOSPI in South Korea.
Talking about Latin Americayou have IPCwhich contains 35 most influential companies on the Mexican Stock Exchange (BMV). At least a third of them belong to tycoon Carlos Slim’s capital.
Another is Bovespa, consisting of the 50 most important companies on the Sao Paulo Stock Exchange; he Merval from Argentina; he IPSA From Chile; he MSCI COLCAP from Colombia; he IBC of Caracas, consisting of 6 companies from Venezuela.
There are also other types of global stock indices such as MSCI Latin Americawhich includes the 137 most important companies in Brazil, Chile, Colombia, Mexico and Peru.
Likewise there is MSCI world, which includes 1,600 companies from 23 developed countries; he MSCI Emerging Markets, which consists of more than 800 companies from developing countries; and S&P Global 100which consists of the 100 most powerful multinational companies on the entire planet.