Stock Market Indices


In this Master Academy educational video and article, we are looking at Stock Market Indices.

We will look here at:

  • What is a Stock Market Index?
  • What are the types of Indices?
  • How are they calculated?
  • Stock Market Index Examples

What is a Stock Market Index?

  • A Stock Market Index is a weighted average of a number of stocks, from a section of a Stock Market
  • A Stock Market Index is calculated from the price of the selected stocks, usually a weighted average
  • A Stock Market Index is supposed to reflect an entire Stock Market and track the entire market over time

What are the types of indices?

The index may reflect anything from a global overview of stocks or a country specific sector.

  • Global and World Indices e.g. MSCI World
  • Regional Indices e.g. S&P Asia 50
  • National Indices e.g. FTSE 100 (for the UK)
  • Sector Indices e.g. Banking

How are indices calculated?

There are two main ways of calculating a stock index

  • Price-Weighted
  • Capitalized-Weighted


The Price of a Stock is the determinant of the Weighting in the Index e.g. Dow Jones Industrial Average

Factors in the Size of the Company, that is the Capitalization of the Stock e.g. S&P 500, FTSE 100

Examples of Stock Market Indices

European Stock Market Indices: FTSE 100, EURO STOXX 50, DAX

Weekly FTSE 100 Future

US Stock Market Indices: S&P 500, Dow Jones Industrial Average, Nasdaq 100

Weekly S&P 500

Asia Pacific Stock Market Indices: Nikkei 225, Hang Seng, ASX 200

Daily Nikkei

Please comment below

Your email address will not be published. Required fields are marked *

Latest News

The Forex Zone
The Forex Zone – Erratic activity as trade tensions send mixed signals

Here in The Forex Zone we review the day trade views for most the major Forex currencies in a volatile week for FX markets amid ongoing trade concerns and inverting yield curves. Again, we spotlight the significant levels to watch and the directional biases for the key Forex pairs; EURUSD, GBPUSD, USDCAD, AUDUSD, NZDUSD and … Continued

Dax index monthly
Dax weekly report 20190815

Dax retests & holds the low so far at 11435. A break lower targets 11400/380, 11320/300 & below 11280 risks a slide as far as support at 11180/170. Bulls need a double bottom at 11435/425 to trigger a recovery targeting 11485/495 & first resistance at 11520/530. If we continue higher look for 11580/590 & minor … Continued

4 Hour EURO STOXX 50 Future Chart
US yield curve inversion sees global stocks resume bear theme

An inversion of the US Treasury 2-10yr yield curve on Wednesday was the first such occurrence since 2007. This sent negative shock waves through global financial markets, as an inversion of this segment of the yield curve is often a signal of a future resurrection in the US. Furthermore, the US 30yr Bond moved to … Continued

AUDNZD 1 hour chart 2019-08-15
AUDNZD and EURNZD Both Stopping for A Pullback!

AUDNZD unfolded five legs within wave a, which can be part of a bigger, bullish reversal. Completed five legs within a trend indicate a three-wave retracement to follow, which is already the case on AUDNZD; an a)-b)-c) pullback to around 1.043/1.039 region, where bulls may again take over. A later rise in impulsive fashion would … Continued

Forex Brokers in your location