Equity index

Is a way of measuring the value development of a larger number of shares. You then get an impression of the general development the market is experiencing. In the media, it is often mentioned that the stock market rises or falls, what they really mean then is that a specific stock index rises or falls in value. If an entire stock index rises or falls in value, it means that the total value of all the underlying shares has risen or fallen in value.

There are many different stock indices. These are often divided into specific sectors or countries. The most well-known are the Dow Jones Industrial Average (DJIA) and the S&P 500, which follow the largest American companies.