What’s the big deal about stock indexes?
Records and milestones
The S&P 500 stock index topped 5 000 for the first time on 9 February this year, exciting some investors and garnering a flurry of media coverage. The Conversation asked Prof Alexander Kurov, Fred Tattersall Research Chair in Finance at the West Virginia University in the US, to explain what stock indexes are and to say whether this kind of milestone is a big deal or not.
The Conversation (TC): What are stock indexes?Alexander Kurov (AK): Stock indexes measure the performance of a group of stocks. When prices rise or fall overall for the shares of t
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