A stock market index is a composite list of the individual stocks traded on the exchange and reflects the overall value of all of the company shares.
Stock market indexes can be classified in more than one way. The most often quoted indexes are broad-base indexes which are made up of the stocks of larger companies that are listed on a country's biggest stock exchange, such as the FTSE 100, the Dow Jones Industrial Average and the S&P 500 Index, the CAC 40, the DAX, the Nikkei 225 and the Hang Seng Index.
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