bad day for him KOSPIwhich starts on Friday, September 23, with a small drop in 0.22%to the 2,327.13 points, after opening. If we compare the figure with the previous days, the KOSPI three consecutive sessions are accumulated in negative values.
As for the profitability of the last seven days, the KOSPI recorded a decrease i 2.34% and in interannual terms it still accumulates a decrease 25.6%. The IS KOSPI one stands 22.15% below its maximum this year (2,989.24 points) and a 1.53% above its minimum valuation so far this year (2,292.01 points).
What is a stock index and what is it for?
stock index it is an indicator that shows how the price of a certain set of assets changestherefore it collects data from different companies or sectors of a part of the market.
These indicators are mainly used by the stock exchanges of different countries and firms with different specialties can integrate each for example having a similar market capitalization or belonging to the same type of industry, in addition, there are some indexes that consider only a handful of shares to determine their value or others that consider hundreds of shares.
Stock market indices act as an indicator of confidence in the stock market, business confidence, the health of the national and global economy and the performance of investments in shares and company shares. In general, if investors lack confidence, share prices tend to fall.
They also work for the asset manager performance and enable investors to compare profitability and risk; the opportunities of measuring a financial asset or creating portfolios.
This type of indicators began to be used at the end of the 19th century after journalist Charles H. Dow. He looked closely at how company stocks tended to go up or down together in price, so he created two indexes: one containing the top 20 railroad companies (the largest industry existed at the time), as well as 12 acts of other types of businesses.
Today there are various indexes and they can also be grouped by location, sectors, company size or asset typeFor example, the US Nasdaq index consists of the 100 largest companies mainly related to technology such as Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Facebook (FB), Alphabet (GOOG), Tesla (TSLA ). , Nvidia (NVDA), PayPal (PYPL), Comcast (CMCSA), Adobe (ADBE).
How is a stock index measured?
Each stock index has its own way of measurement, but the main component is the market capitalization of each company that integrates it. This is obtained by multiplying the day’s value of the bond on the corresponding stock market by the total number of shares in circulation in the market.
Companies listed on the stock exchange are required to present a balance of its composition. That report must be published every three to six months, as appropriate.
Reading a stock index also involves looking at its evolution over time. Current indices always start with a fixed value based on security prices on your start date, but not everyone follows this method. Therefore, it can be confusing.
If one index grows 500 points per day, and another index only adds 20, it may appear that the first index has outperformed. But, if the first day started at 30,000 points and the next day at 300, it can be determined, in percentage terms, that the gains for the latter were more important.
What are the main stock indices?
Between the major stock indices in the American Union There is the Dow Jones Industrial Average, better known Dow Jones, which consists of 30 companies. Similarly, the S&P 500, comprised of 500 of the largest companies on the New York Stock Exchange. Finally comes the 100 headswhich unites 100 of the largest non-financial firms.
On the other hand, the most important indexes of Europe is the Eurostoxx 50, covering the 50 largest companies in the eurozone. On the other hand, the DAX 30, the main German index containing the strongest companies on the Frankfurt Stock Exchange; the FTSE 100 from the London Stock Exchange; the CAC 40 of the Paris Stock Exchange; and the IBEX 35of the Spanish stock market.
I continent of Asiathe IS Nikkei 225, comprising the 225 largest companies on the Tokyo Stock Exchange. The IS SSE Composite Index, which can be considered the main one in China, consists of the most prominent companies on the Shanghai Stock Exchange. The same role played by Hang Index Seung in Hong Kong and the KOSPI in South Korea.
Talking about it Latin American regionthe IS IPCin which swelling 35 most influential companies of the Mexican Stock Exchange (BMV). At least a third of them are part of the estate of tycoon Carlos Slim.
Another is the bovespa, composed of the 50 most important companies on the São Paulo stock exchange; the Merval from Argentina; the IPSA From Chile; the COLCAP MSCI from Colombia; the IBC de Caracas, made up of 6 companies from Venezuela.
Likewise, there are other types of global stock indices such as the MSCI Latin Americawhich includes the 137 most important companies in Brazil, Chile, Colombia, Mexico and Peru.
Likewise, the MSCI World, including 1,600 companies from 23 developed countries; the MSCI Emerging Markets, made up of more than 800 companies from developing countries; and the S&P World 100made up of the 100 most powerful multinationals in the world.
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