A stock index is a measure calculated in a certain way based on a basket of securities. To understand the stock index, it is important which stocks or bonds form this index. Just by the instruments that form the index, you can determine the necessary information about it.
The stock index performs the following tasks:

  • gives general information about the state of the market
  • a tool for hedging risks
  • shows the investment climate in the country for a certain period.

market watch