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<!-- There are links thaterways. A 'world' or 'global' stock market index includes (typically large) companies without regard for where they are domiciled or traded. Two examples are [[MSCI World]] and [[S&P Global 100]].
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[[Image:Comparison of three stock indices after 1975.svg|thumb|300px|A comparison of three major U.S. stock indices: the [[Nasdaq Composite|NASDAQ Composite]], [[Dow Jones Industrial Average]], and [[S&P 500]]. All three have the same height at March 2007. Notice the large [[Dot-com bubble|dot-com]] spike on the NASDAQ, a result of the large number of tech companies on that index.]]
A '''stock market index''' is a method of measuring a section of the [[stock market]]. Many indices are cited by news or financial services firms and are used to benchmark the performance of portfolios such as [[mutual fund]]s.

== Types of indices ==

Stock market indices may be classed in many ways. A 'world' or 'global' stock market index includes (typically large) companies without regard for where they are domiciled or traded. Two examples are [[MSCI World]] and [[S&P Global 100]].


A ''national'' index represents the performance of the stock market of a given nation—and by proxy, reflects investor sentiment on the state of its economy. The most regularly quoted market indices are national indices composed of the stocks of large companies listed on a nation's largest stock exchanges, such as the British [[FTSE 100 Index|FTSE 100]], the French [[CAC 40]], the German [[DAX]], the Japanese [[Nikkei 225]], the American [[Dow Jones Industrial Average|DJIA]] and [[S&P 500]], the Indian [[Sensex]] and [[S&P CNX Nifty]] , the Australian [[All Ordinaries]] and the Hong Kong [[Hang Seng Index]].
A ''national'' index represents the performance of the stock market of a given nation—and by proxy, reflects investor sentiment on the state of its economy. The most regularly quoted market indices are national indices composed of the stocks of large companies listed on a nation's largest stock exchanges, such as the British [[FTSE 100 Index|FTSE 100]], the French [[CAC 40]], the German [[DAX]], the Japanese [[Nikkei 225]], the American [[Dow Jones Industrial Average|DJIA]] and [[S&P 500]], the Indian [[Sensex]] and [[S&P CNX Nifty]] , the Australian [[All Ordinaries]] and the Hong Kong [[Hang Seng Index]].

Revision as of 14:13, 30 September 2009