stock market indexes: group of answer choices all cover the same market sectors. vary in the type of stocks included. all react the same to a change in the price of a particular stock. are all price-weighted. are all computed using the same methodology.

A stock index, often known as a stock market index, is used to measure the performance of a specific sector of the stock market. To put it another way, the index computes the change in share prices for distinct companies. The stock index is calculated using the prices of specific stocks (generally a weighted average).

The three basic categories to consider are market-cap weighted, equal-weighted, and fundamental indexes. An asset or stock market index tracks the gains and losses of a given stock or asset class. The performance of a market index can be rapidly examined to identify the state of the stock market. It is also used as a model by financial firms when creating exchange-traded funds and index funds (ETFs).

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