In investing, an index is a measure of performance of assets on the market. The Dow Jones Industrial Average is a type of index, for example, as itÂ’s used to gauge the performance of the market as a whole by looking at a select group of 30 stocks.
Example: If you want to engage in index investing, youÂ’d be investing in a portfolio or group of securities based on their ability to generate revenue according to the general market index.
Menu