Indexes for analysis

Fund index is a number which in the generalized form expresses the state of certain group of actions. As a rule, the absolute values of indexes are not important. Having the greater value changes index in time, as these ones, allow to judge about common direction of motion of market, even in those cases, when the costs of actions in the selected group change. The most known fund indexes are the American industrial index Dow Jones (DJIA), English FTSE (Financial Times Stock Exchange). Usually an index is determined as middle sizes proper to actions incoming in an index (they are named the components of index). For example, S&P 500 is middle-value for capitalization of costs of actions of five hundred leading American companies, divided on some fixed coefficient (divisor). Divisor gets out so that in the moment of the time-beginning of calculation of index (base date) its value equaled some comfortable number (to the base value). Giving to actions of different scales an index is done in order that more large companies had a greater influence on the value of index, however much it is not an obligatory rule.

The Dow Jones Industrial Average – DJIA – is simple middle index of motion of equity prices 30 largest industrial corporations. An industrial Dow Jones Index is the oldest and most widespread among all indexes of fund market. This is the main indicator for the industrial economy.