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Statistical composite that measures changes in the economy or in financial markets, often expressed in percentage changes from a base year or from the previous month. Indexes measure the ups and downs of stock, bond, and some commodities markets, in terms of market prices and weighting of companies in the index.


A statistical measure of the value of a certain portfolio of securities. The portfolio may be for a certain class of security, a certain industry, or may include the most important securities in a given market, among other options. The value of an index increases when the aggregate value of the underlying securities increases, and decreases when the aggregate value decreases. An index may track stocks, bonds, mutual funds, and any other security or investment vehicle, including other indices. An index's value may be weighted; for example, securities with higher prices or greater market capitalization may affect the index's value more than others. One of the most prominent examples of an index is the Dow Jones Industrial Average, which is weighted for price and tracks 30 stocks important in American markets.


The relative value of a variable in comparison with itself on a different date. Many security price indicators such as the Standard & Poor's series and the New York Stock Exchange series are constructed as indexes. Also called stock index. See also base period.


To adjust a variable by a selected measure of relative value. For example, it has been proposed that an investor's basis on a security be indexed for changes in consumer prices so that only real increases in value will be taxed. Also called tax indexing. See also subindex.


An index reports changes up or down, usually expressed as points and as a percentage, in a specific financial market, in a number of related markets, or in an economy as a whole.

Each index -- and there are a large number of them -- measures the market or economy it tracks from a specific starting point. That point might be as recent as the previous day or many years in the past.

For those reasons, indexes are often used as performance benchmarks against which to measure the return of investments that resemble those tracked by the index.

A market index may be calculated arithmetically or geometrically. That's one reason two indexes tracking similar markets may report different results. Further, some indexes are weighted and others are not.

Weighting means giving more significance to some elements in the index than to others. For example, a market capitalization weighted index is more influenced by price changes in the stock of its largest companies than by price changes in the stock of its smaller companies.


(1) A statistical indicator that measures changes in the economy in general or in particular areas.An example is the cost-of-living index.(2) A reference point against which measurements are taken for purposes of making future adjustments.An adjustable-rate mortgage might begin with an interest rate of 6 percent and provide that it will increase or decrease in a like percentage as the increase or decrease between today's quoted price for 10-year U.S.Treasury bonds and the price on the loan's annual anniversary date.We would say that 10-year T-bonds are the index.

Some leading loan indices include

• Wall Street Journal prime
• Federal discount rate
• Fed funds rate
• 11th District Cost of Funds
• 10-year Treasuries
• One-year LIBOR

References in periodicals archive ?
The indexes are calculated by Dow Jones Indexes using the methodology detailed at the following link: http://www.
A category inflation index reflects the inflation that occurs in the BLS price indexes for a selected BLS category (or, if applicable, a BLS category group).
The experimental polyols A and B led to an acceptable processing range at index 118 and good range at indexes 108 and 100.
Dow Jones Indexes is part of Dow Jones & Company, which publishes the world's most vital business and financial news and information.
Retailers using the retail inventory method must use the CPI; all other taxpayers must select indexes from the PPI.
1)Besides those for industrial production, diffusion indexes are calculated, for example, by the Bureau of Labor Statistics for payroll employment and by the Bureau of Economic Analysis for the indexes of leading, coincident, and lagging indicators.
This process ensures that companies of the same size are accurately represented in the large- and small-cap indexes and across regions and countries.
Approximately 70 percent of the index is benchmarked to the annual indexes derived from comprehensive constant-dollar measures of industry output (table A.
The new OMX Baltic indexes will be calculated in Euro and as price (PI) and gross (GI) indexes.
Levy, managing director, firmwide eBusiness group at Goldman Sachs and acting chairman of CDS IndexCo, stated: "CDS IndexCo has worked closely with Dow Jones Indexes from the outset, at a time when CDX was a new product in the marketplace, and Dow Jones Indexes has been invaluable in helping build a strong brand around the index family.
indexes as tools to help clients more accurately measure the performance of investment managers, and now we're marshalling our knowledge and experience as global investment managers and index providers to develop global equity indexes," said Ron Bundy, director, Russell Indexes.
Russell Indexes and/or benchmarks are unmanaged and are provided for general comparison purposes only.