share price index


Also found in: Dictionary, Thesaurus, Acronyms.

Stock Index

A group of stocks put together in a standardized way to provide a useful window into a sector or market's performance at a glance. That is, a stock index groups together a certain list of stocks and usually takes an average of their prices so as to provide an idea of how the industry or market represented in the stock index is doing. Very often, stock indices are weighted to prevent a few data points from overwhelming it. For example, the S&P 500 is weighted according to market capitalization, while the DJIA is weighted for price.

share price index

a measure of the change in the average prices of company shares over time. In the UK the Financial Times All-Share Index records day-to-day movements in the average price of all company shares listed on the London STOCK MARKET. The Financial Times 100 share index (FTSE-100), the FTSE-250 share index and the FTSE-350 share index show movements in the share prices of, respectively, the top 100,250 and 350 companies by market capitalization. A similar role is performed in the US by the Dow-Jones Index and the Nasdaq Index, and in Japan by the Nikkei Index

In technical terms, a share price index is compiled by noting the prices of the shares included in the index at some ‘base’ point in time (for example, 2 January 2001) and assigning an index number (say 1000) to begin the series. If share prices generally start to increase then this is translated into an upward movement in the value of the index (for example, the value of the index at 2 January 2002 may be, say, 1500, indicating that share prices on average have increased by 50% over a one-year period). Likewise, general falls in share prices are recorded as a decline in the value of the index.

Share price indices reflect the corporate sector's underlying profit and growth record and also act like a barometer of investor confidence or lack of it, about the state of industry and the economy generally See PRICE INDEX.

share price index

a measure of the change in the average prices of company SHARES over time. In the UK the Financial Times All-Share Index records day-to-day movements in the average price of all company shares listed on the London STOCK EXCHANGE. The Financial Times 100 share index ( FTSE-100), the FTSE-250 share index and the FTSE-350 share index show movements in the share prices of, respectively, the top 100,250 and 350 companies by market capitalization. In the USA share price movements are monitored by the Dow-Jones Index and the Nasdaq Index and in Japan by the Nikkei Index

Share price indices reflect the corporate sector's underlying profit and growth record and also act like a barometer of investor confidence in the state of industry and the economy. See PRICE INDEX.

References in periodicals archive ?
They find that the prices of share price index futures contracts traded on US futures markets generally lay within transaction cost bounds.
Group B - shares not included in the share price Index Universe, convertible securities, ETNs and units in closed-end mutual funds which according to their investment policy do not necessarily try to replicate TASE indices.
oADX performed well in comparison with other Middle East exchanges even though the share price index lost 47 per cent,o Healy told Khaleej Times.
The Composite Share Price Index (IHSG) on the Jakarta Stock Exchange (JSX) cli bed from 593.
On the ASX 24, the June share price index futures contract was 34 points lower at 4,785 points with 34,026 contracts traded.
The Jakarta stock market remained bearish in the afternoon, dragging the share price index down 0.
Currently, the composite share price index on the JSX and that on the SSX are around 553.
On the ASX 24, the June share price index futures contract was 65 points lower at 4,808, with 42,000 contracts traded.
On the ASX 24, the June share price index futures contract was up 59 points at 4925 points, with 28,383 contracts traded.
On the ASX 24, the June share price index futures contract was 23 points lower at 4,869 points, with 30,854 contracts traded.
On the ASX 24, the June share price index futures contract was seven points higher at 4924, with 35,919 contracts traded.