2013年10月30日星期三

What is the difference between a stock index and exchange?

  • getting into the stock market
  • stock market holidays
  • foreign exchange market
There is Stock Index (Market Indexes), Exchange composite indexes and actual exchanges.


Stock index consist of limited number of stocks that cover specific market sector or industry. The stock in the index listing are selected by the company that maintain a particular index. Such, Wall Street Journal selects 30 biggest stocks and build Dow Jones Industrial index, Standards & Poors selects 500 biggest stocks and maintain the S&P 500 index, the Nasdaq OMX selects 100 hi-tech no financial stocks to maintain the Nasdaq 100 index and etc.


The actual Exchange is the place where the stocks are traded (bought and sold): NYSE, Amex, Nasdaq in the USA, Toronto Stock Exchange in Canada.


Exchange Composite index is similar to the stock (market) indexes with the difference that it does not cover the specific market sector - it cover the entire Exchange.

What is the difference between a stock index and exchange?

没有评论:

发表评论