An important statistical key figure calculated on the basis of a sample of shares, showing the development of the share prices recorded on one or more stock exchanges. The level of the respective index has – as experience has clearly shown – considerable significance for buy and sell decisions. Also, overall market indices, such as the Dax, are widely regarded as business barometers. – When observing a stock index for a longer period of time, changes in the underlying basket of shares must always be taken into account. The not infrequent overweighting of certain standard stocks, especially on smaller exchanges, must also be taken into account. – See Composite, Dax, Dow Jones Average, Highest Price, Price Index, Nemax, Performance Index, Swiss Market Index, Underperformer, Xetra. – Cf. the development of important indices in the “Euro area statistics” section of the ECB’s respective Monthly Bulletin, under the heading “Financial markets,” subheading “Stock market indices”; ECB Monthly Bulletin, June 2006, pp. 40 f. (changes in the composition of stock price indices; with overviews).
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
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