that represents the particular market or

 

Stock index is an index that represents the particular market or part of it, like a particular economic sector. They represent the situation www.businessmagnet.cc on the market.

For what are they used? 

Stock indices can show you the dynamics of the market. That’s why the absolute values of the indices are not important, but the changing of them signs you about the changing in the market. For example, if the Dow Jones index falls down, this means that the companies represented in this index generally fall down, their stocks are becoming cheaper.

For whom is this useful? Of course, for the investors, economic analytics, banks and governments. For all the people, for whom it is important to see the dynamics of the market and to predict how the economy will change. businessmarketingmagazine.com Economic indices or stock indices are representing the current economic situation, that’s why analyzing their changes helps us to understand the processes in the world economy. 

History 

The first stock index, still very popular, was Dow Jones Transportation Average, created in 1886. It was created by Charles Dow, the famous journalist and investor, who was the founder of Wall Street Journal and one of the founders of the Dow Jones & Company financial agency. Firstly this index united the 11 biggest transportation companies from USA, now it unites 20.