index investment & finance definition
A
statistical indicator that measures changes in financial markets or the
economy. In the case of economic indicators, the Producer Price Index (PPI) is
one example of an index. An index also can be a group of stocks representing a
particular segment of the market. Well-known indices are the Dow Jones
Industrial Average, the S&P 500 Index, the NASDAQ Composite Index, and the
Russell 2000 Index.
See index in Wall Street Words
The relative value of a variable in comparison with itself on a different date. Many security price indicators such as the Standard & Poor's series and the New York Stock Exchange series are constructed as indexes. Also called
stock index. See also
base period.
To adjust a variable by a selected measure of relative value. For example, it has been proposed that an investor's basis on a security be indexed for changes in consumer prices so that only real increases in value will be taxed. Also called
tax indexing. See also
subindex.
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