IBEX 35 falls 1.26% after opening on August 29

Negative start to the day for the Capricorn 35which starts the Monday 29th August session with notable declines 1.26%until 7,962.15 points, after the start of the opening session. Compared to previous appointments that Capricorn 35 collects nine sessions in a row in the red.

Based on the last seven days, the Capricorn 35 records a drop-in 3.89% and in the last year it still holds a decline of 10.17%. That Capricorn 35 stands a 10.87% below its maximum this year (8,933.60 points) and a 4.15% above its previous annual minimum price (7,644.60 points).

What is a stock index and what is it for?

a stock index It is an indicator used to know the evolution of the price of a specific group of assets.for which it uses data from different companies or sectors of a market segment.

These indicators are mainly used by the stock exchanges of the countries and each of them can be integrated by signatures with specific properties B. a similar market capitalization or belonging to the same industry, there are also some indices that consider only a handful of stocks to determine their value, or others that consider hundreds of stocks.

Stock market indices serve as Indicator of confidence in the stock market, business confidence, the health of the national and global economy and the performance of investments in stocks and shares in a company. In general, stock prices tend to fall when investor confidence is lacking.

They also work to measure that performance of an asset manager and allow investors to compare profitability and risk; measure the chances of a financial asset or create portfolios.

This type of indicator was used at the end of the 19th century Journalist Charles H. Dow. watched closely how company stocks tended to rise or fall together in price, so he created two indices: one with the 20 largest railroad companies (it was the largest industry at the time) and 12 actions of other types of companies

Currently there are various indices and They can be grouped by location, sectors, company size or even asset typeFor example, the US Nasdaq Index consists of the 100 largest companies primarily related to technology, such as Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Facebook (FB), Alphabet (GOOG), Tesla (TSLA) , Nvidia (NVDA), PayPal (PYPL), Comcast (CMCSA), Adobe (ADBE).

How do you read an index?

Each stock index has its own way of measuring it, but the main factor is the market capitalization of each company it integrates. This is calculated by multiplying the daily value of the relevant exchange by the total number of shares held by investors.

Listed companies are obliged to do so present a balance its composition. This report must come to light every three or six months, depending on the case.

Reading a stock index also requires analyzing its fluctuations over time. Current indices always open with a fixed value based on security prices on your start date, but not everyone follows this method. Therefore, failures can occur.

If one index adds 500 points one day while another only adds 20 points, it might appear that the first index performed better. However, if the former started the day with 30,000 points and the other with 300 points, it can be deduced that the gains for the latter were higher in percentage terms.

Major Stock Indices

Between major US stock indices There is the Dow Jones Industrial Average, better known as Dow Jones, consisting of 30 companies. Likewise the S&P500, which includes 500 of the largest companies on the New York Stock Exchange. Finally she comes Nasdaq100which brings together 100 of the largest non-financial companies.

On the other hand, the most outstanding indices are from Europe are the Euro Stoxx 50, covering the 50 largest companies in the eurozone. On the other hand, the DAX30, the main German index containing the most outstanding companies on the Frankfurt Stock Exchange; the FTSE100 from the London Stock Exchange; the acc 40 the Paris Stock Exchange; and the Capricorn 35the Spanish stock exchange.

in the AsiaWe have that Nike 225, composed of the 225 largest companies on the Tokyo Stock Exchange. There are those too Composite SSE Index, considered the most representative of China and composed of the most relevant companies on the Shanghai Stock Exchange. The same role played by Hang Seung Index in Hong Kong and the COSPI in South Korea.

Talk about the Latin American regionyou have the CPIwhich contains at 35 Most Outstanding Companies of the Mexico Stock Exchange (BMV). At least a third of these are part of the estate of tycoon Carlos Slim.

Another is the Bovespa, composed of the 50 most important companies on the São Paulo Stock Exchange; the merval from Argentina; the IPSA From Chile; the MSCI COLCAP from Colombia; the IBC from Caracas, composed of 6 companies from Venezuela.

Finally, there are other types of global stock indices like the MSCI Latin Americawhich includes the 137 most important companies in Brazil, Chile, Colombia, Mexico and Peru.

Likewise, there are MSCI world, which includes 1,600 companies from 23 developed countries; the MSCI Emerging Markets, composed of more than 800 companies from developing countries; and the S&P Global 100composed of the 100 most powerful multinational companies in the world.

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