One number for how the whole market moved
An index combines many stocks into a single figure that shows whether the market, or a slice of it, rose or fell. It lets you read the direction without checking individual names, which is why news and fund performance are quoted against it. Some indexes average prices; others weight by market cap.
If a market's main index closes 1.5% higher, that day favored rising prices across the market.
For learning, not investment advice. Decisions are your own.
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