INDICES: A BRIEF GUIDE

Indices: A brief guide

Indices: A brief guide

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Short Note on Indices and Stocks


Stocks


stocks represents a unit of ownership in a company. When you buy a stock, you essentially own a part of that company and become a shareholder. Stocks are traded on stock exchanges like the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) in India or NYSE (New York Stock Exchange) and NASDAQ in the U.S.



Indices


Indices is a statistical measure that represents the performance of a group of stocks. It helps investors track market trends and make informed decisions. Popular indices include:




  • Sensex (India) – Tracks 30 top companies listed on the BSE.

  • Nifty 50 (India) – Comprises 50 large-cap stocks listed on the NSE.

  • S&P 500 (USA) – Represents 500 top U.S. companies.

  • Dow Jones (USA) – Tracks 30 major U.S. companies.

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