What is designated by indexes of stock market?
Each trader more or less familiar with the exchange auction will always pay attention to market indexes. In the USA three main indexes are the Dow Jones (Dow Jones), S and P500, Nasda. For example the Dow Jones gives the characteristic to a condition of the auction for every day. Each index works independently. It is possible that in One of days Nasda`s index can fall to several points, and the Dow Jones and S and P500 can remain at the same level. But most often one index follows another and every day after closing of the auction appears corresponding kandelstik in each of indexes. Kandelstik is a graphic symbol - a sign which shows as moves also that happens to an index every day. This kandelstik will correspond to the auction for last day. The behavior of stock market is defined first of all by large banks therefore during crisis banks seek to lift the capitals and try to work more intensively, to make money in more perspective companies. And each client having come to bank wishes to know, how firmly the bank stands on the feet i.e. whether it is safe to invest money in it. Naturally as much as possible clients try to keep banks. It is more than clients - more capital.
What is exchange) an index?
the Share index or a market index is an indicator of the change in price for certain actions. All stock companies have the number of shares which they sell and buy in the market. World market indexes reflect the general development and stability ekonomicheskigo growth. Each investor before investing money in any otrast of production (trade, medicine, construction etc.) will check as the market index representing this branch behaves. On the graphic analysis it is possible to see easily as a certain index behaves: it falls or grows. There are no big difficulties on calculation of an index. The largest companies which possess the equity stake, the oil companies, banks, the autocompanies - all this also makes an index. If these companies are successful Nan the market of the securities, then and the index will grow up. And investors will see that the index grows and will invest money in these companies. Therefore as do not twist, but circulation is not only in the nature, but also in money.
Why the Dow Jones and because Charles Henry Dow was its opener is so called. He created an index for the purpose of definition of a condition of the market at the moment. As served as big break at the world trade exchanges. Now this index includes 30 largest American companies such as: Johnson and Johnson, General Elektrik, General motors, Ameriken interneshinel groups, Verayzon, Alkoa, etc. the Dow Jones is an industrial index. And its players are constantly changed depending on positions of the industrial corporations presenting it at the market.
Nasda represents the tekhnologochesky companies such as: Yakho, Google, Epl, Del, etc. And at an investment of the capitals in these companies all should check an index and as these companies in the market function.
Each company wishes to be included in any index as it raises stock quotations, gives the chance to show the komaniya in the market and it is natural to earn the capital. Therefore, if the company corresponds to an index, then it is rather stable corporation which can entrust the savings or to buy it to an acacia.
So business remains for you!