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What is difference between stock market average and stock market index?
Wiki User
∙ 15y ago
The Stock Market is considered to be ALL publicly traded securities. There are many types of indexes but 2 of the more popular ones are broad based indexes and narrow based indexes.
A Broad based index, such as the S&P 500 and DJIA, is composed of a group of stocks that intend to reflect the performance of the entire stock market.
A narrow based index, such as Technology and Biotech, measures the performance of a particular market segment or industry group.
Hope this helps!
Jennifer
Wiki User
∙ 15y ago
Wiki User
∙ 15y agoThe main difference between stock mkt. avg. & stock mkt. index is ............ Stock mkt. avg. is being calculated by considering all the stocks which are traded in the stock mkt. While stock mkt. index is being calculated as per the norms set by respective stock mkt. regularity For e.g. BSE (Bombay Stock Exchange) index is sensex is calculated on the Market Cap. of the respective stock. Like Reliance which has highest Mkt. Cap. In Sensex Around 16%. So Movement in price of Reliance Affect Stock Mkt. index is high compare to stock mkt. avg. Mainly Difference arise because stock mkt. index in Calculated with Certain Factor and limitation while stock mkt. avg. does not have such limitation.
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