Complete information about the stock market index

In this article, we intend to teach you stock market indices and their concepts, as well as provide you with a course. Beginner to advanced scholarship training Get acquainted in Iran, stay with us until the end of the training.

What is the Tehran Stock Exchange Index?

In fact, the Tehran Stock Exchange index is a measure of the average of the growth or decline of stocks of listed companies.

In particular, the Tehran Stock Exchange index is known in the media as the Iran Stock Exchange Index

What is the total stock index?

The average of all fluctuations in the stock market is called the total index, this index actually reflects the general situation of the market and the growth of the stock index means the growth of the stock market. It is better to know that this index is easier to change by large shares, for example if Shasta stock If there is a change in one day, it is easy to see a change in the index.

How to calculate the total stock index

It is good to know that the formula for calculating the total stock index is not like the calculation of Delta or Pythagoras, nor integral and derivative! Rather, the formula for calculating the total index is designed in such a way that it pays attention to the proportion of large or small companies.

Stock index performance

The stock market index if it feels that investors are in economic decline. Collects a list of data from various companies in the industry. Together, these data form a picture that helps investors compare current price levels with past prices to calculate market performance.

<It is better to know>>

  • Some indicators focus on a smaller subset of the market
  • Indicators also vary in size, with some tracking a handful of stocks and others searching for thousands of stocks. Each index has a unique purpose because different investors are interested in different sectors.


Lesser known stock indices

Beyond these well-known stock market indices, there are thousands of lesser-known indices. You can find indicators, which show the performance of stocks in a particular country, or trade in a particular sector of the economy.

Some indicators divide large, medium and small companies into different categories. Others use investment strategies such as growth, value or dividend investing to select component stocks.

There is an indicator for almost any stock of your interest. The rise of index investment funds and ETFs has led to a proliferation of indexes to help fund managers use passive investment strategies to minimize costs and allow investors to tailor their portfolios to their liking. .

  • Introducing the weighted index

The measure used to get the same average from the capital market is called the weighted index.

What happens to the equities index if market shares are negative?

If so, but only a few large market stocks are positive, the overall index becomes positive; But in such cases, the index will be negative.

<<به طور کلی شاخص هم وزن میانگینی از کل بازار است اما، بر عکس شاخص کل بورس، بدون درنظر گرفتن بزرگ یا کوچک بودن سهام‌ها انجام می گیرد.>>

The difference between the total index and the weighted index

Do you know the main difference between the total index and the weighted index?

The difference is that they do not consider the value of the stock.

The equity index averages all market shares equally; But the overall index gets its most impact from large stocks.


To better understand the indicators

  • An index measures the price performance of a portfolio using a standard benchmark and good method.
  • Indicators in financial markets are often used as a yardstick to evaluate the performance of an investment.

What does the industry index represent?

The industry index actually reflects the general state of an industry in the stock market.

As you know, there are several companies in the capital market, some of which operate in one industry.

< For example, the shares of Isfahan Steel, Mobarakeh Steel and Hormozgan Steel are operating in the same industry, which together is called the steel industry.>>

And then, companies operating in an industry are averaged and plotted as an index, which is called the industry index.

Another way to determine the value of an investment, this time with the industry index

As you probably know, analysts use a variety of methods to identify stocks, one of which is industry index analysis! Because in this way, they generally understand whether this industry is worth the investment or not.

This part of the stock exchange training is also over, we hope we have given good explanations about the stock market indicators, for training the next parts of the stock exchange, refer to the site of Master Mehrabi.