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Stock Index
Term category: Stocks
In 10 words or less:  A measure of change for the equity markets.

Definition: A stock index is a measure of the performance of underlying stocks.  Changes in the index reflect changes in the value of the stocks.

Advice: Stock indices provide investors with an easy way to determine if the market is up or down for the day.  It also gives investment managers a benchmark to try to "beat."

 

 

 

 

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