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The Russel 2000 stock index registered a loss of 2.48% this September 23

This year the markets have registered continuous volatility.  (Infobae)
This year the markets have registered continuous volatility. (Infobae)

Bad day for Russell 2000which ended the day on Friday, September 23, with a big drop in 2.48%to the 1,679.59 points. The IS Russell 2000 reached a maximum of 1,707.61 points and the minimum number thereof 1,658.66 points. The trading range for Russell 2000 between the highest point and the lowest point (maximum-minimum) during this day stood at 2.87%.

If we consider the details of the last seven days, the Russell 2000 accumulates decrease i 6.6%so for a year it still keeps falling in 25.65%. The IS Russell 2000 one stands 26.09% below the maximum level so far this year (2,272.56 points) and a 1.8% above its minimum valuation for the current year (1,649.84 points).

Stock market indices… what?

stock index It is an indicator that shows how the value of a set of assets develops.if it collects data from different companies or sectors of the market.

These indicators are mainly used by the stock exchanges of different countries and companies with certain characteristics can integrate each such as having a similar market capitalization or belonging to the same type of business, in addition, there are some indexes that only take into account 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, stock values ​​tend to fall.

They also work for the asset manager performance and allowing investors to compare return 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 in our economy there are various indices and they can be grouped by location, sectors, company size or even 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 to read an index?

Each stock index has its own calculation method, but the main factor 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 held by the investors.

Businesses listed on the stock exchange are required to present a balance of its composition. This report must be published every three to six months, as the case may be.

Reading a stock index also involves analyzing its changes over time. Current indices always appear with a fixed value based on security prices on your start date, but not everyone follows this method. Therefore, it can be misleading.

If one index sees an increase of 500 points per day, while another index only adds 20, it may appear that the first index performed better. However, if the first day started at 30,000 points and the next day at 300, it can be concluded that, in percentage terms, the gains for the latter were more important.

These are the main stock indices

Between the major US stock indexes There is the Dow Jones Industrial Average, better known Dow Jones, which includes 30 companies. Similarly, the S&P 500, comprised of 500 of the largest companies on the New York Stock Exchange. Finally, 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. He too 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 is listed as the strongest in China, consists of the most prominent companies on the Shanghai Stock Exchange. Similarly, it is worth mentioning the Hang Index Seung in Hong Kong and the KOSPI in South Korea.

Talking about it Latin Americathe IS IPCin which swelling 35 most consolidated companies of the Mexican Stock Exchange (BMV). At least a third of them are owned by magnate 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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