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20. What is a Stock Market Index? - savingandinvesting.com

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Uploaded by on Feb 8, 2007

Stock market indices like the S&P 500 are spoken about a lot - what do they actually represent?

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  • hello...I am a student of Masters in Management, majoring in Finance. Your brief piece on Stock Market Indices provided a basic understanding.

    Can you tell me where I can access materials on the history of market indices?

  • @AnirbanKar1 Some of the main index providers like S&P and MSCI provide information on their indices. Also Ibbotson keeps track of historical index performance in an annual yearbook which has a lot of data (but that is not cheap). Beyond that I am not aware of a book specifically on indices - I hope that helps nonetheless - very best regards, Michael.

  • Hello Savingandinvesting, I had a question. Is it necessary for a company to put ALL the equity of that company into stock market ? or they can just keep 50% of the company private within the original owner(s) and then split up the rest 50% into stock market? if that's the case, then isn't it the total market capital of that company will be [ (Number of shares x Price of each share) + Equity of privately held 50% ] ?

    Tnx.

  • Typically what happens is that company goes public, all equity converts to public equity. Original owners can (and do) retain part or all of equity stake but now also in shares/stocks that are same as ones created/sold by the original investors and trading in market. If 50% is in the stock market, and 50% held by the original owners, all investors typically hold the public shares/stocks. 50% that in market also referred to as the free float. Some indices count only free float. Hope that helps.

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  • Nice video. Very useful.

  • your voice is commanding and rather sexy ;)

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  • Regardless of all the big problems, real value will still result in gains for people who spot potential early. Especially in junior market companies.

    Everyone who knows and follows me knows that I'm tired of getting involved in stocks where institutions influence the stock.

  • talk slower man :)))

  • thank you for your explaination.....that's pretty nice video.....

  • I bought a book last week called How The City Really Works, written by Alexander Davidson and published by The Times. If I could understand it, I wouldn`t have to read it. It is full of technical terms which remain almost totally unexplained.

  • comment me back

    CAN SOMEONE PLEASE TALK TO ME EG

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