📊 Index

Why Indices Are the Foundation of Modern Capital Markets An index is a basket of stocks or bonds that measures the performance of a specific market. It shows how a market, sector, or country is developing overall — without having to track every single stock. Indices are the foundation of ETFs, benchmarks, market analysis, and long-term investing. 🔍 Why do indices exist? Because no one can track 500, 1,000, or 3,000 individual stocks. An index: combines many securities shows the average market movement serves as a benchmark forms the basis for ETFs 👉 Without indices, there would be no passive investments. 🧱 The Most Important Types of Indices 1. Country Indices They show the performance of a country. Examples: DAX → Germany S&P 500 → USA Nikkei 225 → Japan 2. Regional Indices They combine multiple countries. Examples: MSCI Europe …