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Finance Dictionary and Glossary of Investment Terms
Market index
Definition 1.
Market measure that consists of weighted values of the components that make up certain list of companies. A stock market tracks the performance of certain stocks by weighting them according to their prices and the number of outstanding shares by a particular formula.
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Definition 2.
An index which is designed to measure price changes of an overall market, such as the stock market or the bond market. An example is Vanguard's Total Bond Market Index.
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