In economics Economics is the social science that studies the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek οἰκονομία from οἶκος (oikos, "house") + νόμος (nomos, "custom" or "law"), hence "rules of the house(hold)". Current economic and finance Finance is the science of funds management. The general areas of finance are business finance, personal finance, and public finance. Finance includes saving money and often includes lending money. The field of finance deals with the concepts of time, money and risk and how they are interrelated. It also deals with how money is spent and budgeted, an index is a single number calculated from a set of prices or of quantities[citation needed]. Examples include the price index A price index is a normalized average (typically a weighted average) of prices for a given class of goods or services in a given region, during a given interval of time. It is a statistic designed to help to compare how these prices, taken as a whole, differ between time periods or geographical locations, quantity indexes (such as real GDP), market performance indexes (such as a labour market index The BA has developed a new job barometer that will be published on a monthly basis with immediate effect. The job index of the BA, abbreviated to BA-X, illustrates the development of the demand for manpower on the so-called primary labour market / job Index The BA has developed a new job barometer that will be published on a monthly basis with immediate effect. The job index of the BA, abbreviated to BA-X, illustrates the development of the demand for manpower on the so-called primary labour market and stock market indexes A stock market index is a method of measuring a section of the stock market. Many indices are cited by news or financial services firms and are used to benchmark the performance of portfolios such as mutual funds). Values of the index in successive periods (days, years, etc.) summarize level of the activity over time or across economic units (regions, countries, etc.)[citation needed].
In financial markets, an index is a customized basket of securities that tracks a particular market or segment. Each index has its own calculation methodology and its own specific process in order to select particular securities. Some companies (S&P, Dow Jones, SG Index, STOXX) have created a lot of indices to replicate different markets or selected industries. S&P is one of the most known index provider with the S&P 500. It offers a wide range of indices like the S&P Asian Index which measures the equity market of a basket of Asian countries (India, Economy of the People's Republic of China The economy of the People's Republic of China is a rapidly developing and influential market economy in the world. China is the third largest economy in the world after the US and Japan with a nominal GDP of US$4.4 trillion when measured in exchange-rate terms. It is the second largest in the world after that of the United States with a GDP of $7.8, Hong Kong, Taiwan, Korea and Singapore). Dow Jones Indexes provide a range of indices like the world oldest, and very famous, Dow Jones Industrial Average. It provides also an index which measures the stock performances of 50 leading multinational companies. SG Index, established in 2007, is a new provider of indices who provides data used by a number of financial products. One of the most famous index is the SGI Wise Index, that provides an exposure to European equities.
The Operating Index The Operating Index is a tool for Indexing Operating Performance. It shows the median or average of a financial ratio or KPI of comparable companies, so called peer companies. Indexing operating performance compares internal performance to the Operating Index. In the more general sense of the word, the graph itself is also referred to as Operating is a tool to measure a company's performance on a financial metric and compare it with the median or average performance of that metric in a Peer universe The perspective of Indexing Operating Performance is the one of an investor, since the aim of indexing is to measure value generation. This value performance is determined by investors’ behavior. If an investor considers another company as an alternative investment opportunity with similar operating risks, this company is a peer company, because over a period of time.
Consumer price indexes A consumer price index is a measure estimating the average price of consumer goods and services purchased by households. A consumer price index measures a price change for a constant market basket of goods and services from one period to the next within the same area (city, region, or nation). It is a price index determined by measuring the price can be used, among other things to adjust salaries, bonds interest rates, and tax thresholds for inflation.
Some investment funds (index funds An index fund or index tracker is a collective investment scheme that aims to replicate the movements of an index of a specific financial market, or a set of rules of ownership that are held constant, regardless of market conditions) manage their portfolio so that their performance mirrors (tracking) the performance of a stock market index or a sector of the stock market[citation needed].
Indexes
- S&P 500 The S&P 500 is a market free float-weighted index published since 1957 of the prices of 500 large-cap common stocks actively traded in the United States. The stocks included in the S&P 500 are those of large publicly held companies that trade on either of the two largest American stock market companies; the NYSE Euronext and the NASDAQ OMX
- S&P 400 The S&P 400 Index, but more commonly known as the S&P 400 MidCap Index, is a stock market index from Standard & Poor's
- S&P 600 The S&P 600 Index, but more commonly known as the S&P 600 SmallCap Index, is a stock market index from Standard & Poor's. It covers roughly the small-cap range of US stocks, using a capitalization-weighted index. The index covers roughly three to four percent of the total US equities market
- S&P 1500 The S&P 1500, or S&P 1500 Composite Index, is a stock market index of US stocks made by Standard & Poor's. It includes all stocks in the S&P 500, S&P 400, and S&P 600
- S&P/ASX 200 The S&P/ASX 200 index is a market-capitalisation weighted and float-adjusted stock market index of Australian stocks listed on the Australian Securities Exchange from Standard & Poor's. It was started on 31 March, 2000 with a value of 3133.3, equal to the value of the All Ordinaries at that date
- S&P/TSX Composite Index The S&P/TSX Composite Index is an index of the stock prices of the largest companies on the Toronto Stock Exchange as measured by market capitalization. The Toronto Stock Exchange listed companies in this index comprises about 70% of market capitalization for all Canadian-based companies listed on the TSX.[citation needed]
- S&P Global 1200 The S&P Global 1200 Index is a free-float weighted stock market index of global equities from Standard & Poor's. The index covers 31 countries and approximately 70 percent of global stock market capitalization. It is composed of six regional indices:
- S&P Custom Group of indices
Provider: Russell Investments
- Russell 1000 Index The Russell 1000 Index is a stock market index that represents the highest-ranking 1,000 stocks in the Russell 3000 Index, which represents about 90% of the total market capitalization of that index. The Russell 1000 Index has a weighted average market capitalization of $81 billion; the median market capitalization is approximately $4.6 billion
- Russell 2000 Index The Russell 2000 Index is a small-cap stock market index of the bottom 2,000 stocks in the Russell 3000 Index
- Russell 3000 Index The Russell 3000 Index is tracked by the iShares ETF
- Russell Midcap Index The Russell Midcap Index measures performance of the 800 smallest companies in the Russell 1000 Index, with weighted average market capitalization of approximately $6.7 billion, median capitalization of $3.6 billion, and market capitalization of the largest company $13.7 billion
- Russell Microcap Index
- Russell Global Index
- Russell Developed Index
- Russell Europe Index
- Russell Asia Pacific Index
- Russell Emerging Markets Index
- MSCI World Index The MSCI World is a stock market index of 1500 'world' stocks. It is maintained by MSCI Inc., formerly Morgan Stanley Capital International and is often used as a common benchmark for 'world' or 'global' stock funds
- MSCI EAFE (Europe, Australasia, and Far East) Index The MSCI EAFE is a stock market index of foreign stocks, from the perspective of a North American investor. The index is market-capitalization weighted . It first ranks each stock in the investable universe from largest to smallest by market capitalization. Basically, the largest 70% will comprise the MSCI EAFE Large Cap (new index), the largest 85
- ABX On January 17, 2006, CDS Indexco and Markit launched ABX.HE, a synthetic asset-backed credit derivative index, with plans to extend the index to other underlying asset types other than home equity loans. ABS indices allow investors to gain broad exposure to the subprime market without holding the actual asset-backed securities
- CDX A credit default swap index is a credit derivative used to hedge credit risk or to take a position on a basket of credit entities. Unlike a credit default swap, which is an over the counter credit derivative, a credit default swap index is a completely standardised credit security and may therefore be more liquid and trade at a smaller bid-offer / iTraxx iTraxx is the brand name for the family of credit default swap index products covering regions of Europe, Japan and non-Japan Asia. They form a large sector of the overall credit derivative market. The indices are constructed on a set of rules with the overriding criterion being that of liquidity of the underlying Credit Default Swaps . The iTraxx
- CMBX
See also
- Stock market index A stock market index is a method of measuring a section of the stock market. Many indices are cited by news or financial services firms and are used to benchmark the performance of portfolios such as mutual funds
- Illinois Flash Index The economy of Illinois is includes many industries. The Chicago metropolitan area is home to many of the nation's largest companies, including Boeing, McDonalds, Motorola, and United Airlines. The Chicago area economy headquarters a wide variety of financial institutions, and is home to the largest futures exchange in the world, the Chicago
- Producer price index In the US, the PPI was known as the Wholesale Price Index, or WPI, up to 1978. The PPI is one of the oldest continuous systems of statistical data published by the Bureau of Labor Statistics, as well as one of the oldest economic time series compiled by the Federal Government. The origins of the index can be found in an 1891 U.S. Senate resolution
- Bureau of Labor Statistics The Bureau of Labor Statistics , a unit of the United States Department of Labor, is the principal fact-finding agency for the U.S. government in the broad field of labor economics and statistics. The BLS is an independent national statistical agency that collects, processes, analyzes, and disseminates essential statistical data to the American
- Dow Jones Indexes Dow Jones Indexes was formed in 1997 as an entity within Dow Jones & Co. It produces, maintains, licenses and markets indexes as benchmarks and as the basis of investible products such as exchange traded funds (ETFs), mutual funds and structured products. The company currently has employees in 18 cities worldwide, including Princeton, NJ, New
- Operating Index The Operating Index is a tool for Indexing Operating Performance. It shows the median or average of a financial ratio or KPI of comparable companies, so called peer companies. Indexing operating performance compares internal performance to the Operating Index. In the more general sense of the word, the graph itself is also referred to as Operating
External links
Categories: Index numbers Categories: Statistical data types | Statistical data sets | Econometrics |
WWJ
The index tracks economic innovation in Michigan based on calculations of employment of innovation workers, trends in venture capital, ...
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Labor Economics Top > 26 Aug 1999 12 10 687 Labor Economics cove > 03 Mar 2000 11 34 60K Labor Economics cove > 24 Aug 1999 07 30 135K Labor Economics init > 22 Mar 2000 15 24 1 9K
Robert Oak
hu, 03 Sep 2009 17:11:19 GM
ISM August services . index. 2009 ISM · Macro . Economics. . The phrase that comes to mind is mixed bag. Today the ISM Services . index. for August came in at 48.4%. Anything below 50 is a contraction, i.e. still a recession. ...
Q. I'm working on an assignment for my online college course-MacroEconomics and I don't really understand CPI. The higher the CPI in a city, the worse it is to go there? Correct? Because that means the prices there are much higher for goods and services. Am I correct?
Asked by deltaflaze - Sun Feb 18 20:14:02 2007 - - 3 Answers - 0 Comments
A. The CPI is a calculation based on a base year. I don't know in the case of the US, but in the country I come from, the base year is 1990. Thus, a CPI of 120 means that, since 1990, the prices have increased 20%. If you want to see the change in the CPI for a time-frame other than from the base year to the current year, you would need to calculate it. Say, the CPI in 2000 was 110 and in 2006 it was 120, what is the change? (120-110)/110 +100 = 9.1% Bear that in mind when you make comparisons.
Answered by MSDC - Wed Feb 21 14:09:21 2007
