Broad-Based Index

外汇网2021-06-19 14:23:40 164

An index designed to reflect the movement of the entire market. The smallest broad-based index is the Dow Jones Industrial Average with 30 industrial stocks and the largest is the Wilshire 5000 Total Market Index. Other examples include the S&P 500, Russell 3000Index, AMEX Major Market Index and the Value Line Composite Index.

Taobiz explains Broad-Based Index

Investors who want the maximum benefit of persification can invest in securities that have as their underlying tracking instrument an index or other financial product made up of several, well-persified stocks. Securities based on broad-based indices allow investors to effectively own the same basket of stocks contained in a major index while committing a small amount of financial resources.

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