A stock market index tracks the performance of a group of stocks. The S&P 500 tracks 500 large US companies. The NASDAQ Composite focuses on technology stocks. The Dow Jones Industrial Average (DJIA) tracks 30 major US companies. Indices provide a benchmark for comparing portfolio performance and serve as a barometer for the overall market.
Related Terms
A stock (also called a share or equity) is a fractional ownership stake in a company. When you buy a...
The stock market is a collection of exchanges where buyers and sellers trade shares of publicly list...
A bull market is a period in which stock prices are rising or expected to rise — generally defined a...
A bear market is a period of declining stock prices, typically defined as a drop of 20% or more from...
Market Navigator Glossary — plain-English definitions of 93+ investing and crypto terms. All content is for educational purposes only and does not constitute financial advice.