What Is An Index?

Patrick Curtis

Reviewed by

Patrick Curtis WSO Editorial Board

Expertise: Investment Banking | Private Equity

An index is a measure of an economy and in financial terms, it is a synthetic (imaginary) portfolio which aims to represent a specific market. As this is just a benchmark and aims to only represent the change in value of an economy, the percentage change is usually the most important value (rather than the actual change in value).

Some of the best-known indices in the world are:

  • S&P500
  • FTSE100
  • Dow Jones Industrial Average
  • Nikkei

Related Terms

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Patrick Curtis

Patrick Curtis is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. He has experience in investment banking at Rothschild and private equity at Tailwind Capital along with an MBA from the Wharton School of Business. He is also the founder and current CEO of Wall Street Oasis. This content was originally created by member WallStreetOasis.com and has evolved with the help of our mentors.

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what is an index