Index

Usually, a number calculated by weighting a number of prices or rates according to a set of predetermined rules. A financial market index is a statistical construct that measures relative or absolute price changes and/or returns in stock, fixed income, currencies, or futures markets. The purpose of the index calculation is usually to provide a single number whose behaviour is representative of the movements of a variety of prices or rates and indicative of behaviour in a market. Indexes serve as the underlyings for a number of products, particularly in equity and fixed-income markets.