Equity indices, or stock indices, are in simple language indexes that represent the overall price of a basket of underlying stocks.
The major equity indices (stock indices of the world) include, but are not limited to, the following:
- S&P 500
- Dow Jones
- Euro Stoxx 50
Stock indices are in most cases a representation of the overall picture of the stock market, which their basket belongs to. In most cases, the underlying stocks that belong to a stock index consist of the most influential (largest capitalization) companies.