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Index

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.

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.

index

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.

index

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.

Index.

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.

index

(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 ?
Leveraging the firm's deep coverage of growing companies in the clean technology and alternative energy sectors, Jefferies is also introducing a number of indices benchmarking emerging opportunities in this area.
To complement the firm's strong position in the oil & gas, oil service and maritime shipping industries, Jefferies is introducing a set of targeted energy indices, including the Jefferies North American Small/Midcap E&P Index(SM), the Jefferies Global Oil Service Index(SM), the Jefferies Global Drilling Contractor Index(SM) and the Jefferies US Tanker Index(SM), all of which are segments of the energy market previously without dedicated benchmarks.
As investor interest in clean technology and energy continues to grow, Jefferies has developed a series of exclusive indices to enable our institutional customers to evaluate these sectors and their related investments," said Mr.
The results of the November 2006 Quarterly Index Review for the MSCI Standard Index Series, the Semi-Annual Index Review for the MSCI Small Cap Index Series, the MSCI Global Value and Growth Index Series, the MSCI US Equity Indices, the MSCI US REIT Index, the MSCI High Dividend Yield Indices, MSCI China A Value and Growth Index Series as well as the Quarterly Index Review for the MSCI Pan-Euro and Euro Indices and the MSCI China A Index have also been posted on MSCI Barra's web site at www.
The results of the November 2006 Semi-Annual Index Review for the MSCI US REIT Index, the MSCI Small Cap Index Series, the MSCI Global Value and Growth Index Series, the MSCI High Dividend Yield Indices, the MSCI Japan Kokunai Indices, MSCI China A Value and Growth Index as well as the Quarterly Index Review for the MSCI Standard Index Series, the Pan-Euro and Euro Indices and the MSCI China A Index have also been posted on MSCI's web site at www.
Teams within UBS Global Asset Management and UBS Investment Bank worked together with IIC to develop this new suite of indices, which offer the industry what we believe are the most accurate and useful pension liability benchmark available today.
We believe that these indices will provide investable and appropriate benchmarks for such strategies," added Mr.
Compared to currently available options for liability benchmarks, these indices are more comprehensive and offer the following advantages:
The results of the August 2006 Quarterly Index Review for the MSCI Standard Index Series, the MSCI Small Cap Index Series, the MSCI Global Value and Growth Index Series, the MSCI US REIT Index, the MSCI Kokunai Japan Equity Indices, the MSCI Pan-Euro and Euro Indices, the MSCI China A Index and the MSCI China A Value and Growth Index Series have also been posted on MSCI Barra's web site at www.

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