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What is a stock index?

a.
The average change in a stock’s price over a given period.
b.
An indicator of market strength based on the prices of several specific stocks.
c.
A listing of all stocks available in a specific market.
d.
The current number of stocks in your portfolio.

User NoShowP
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2 Answers

2 votes

Answer: B

Explanation:

cuz <3

User Elis Byberi
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4 votes

Answer:

Option B is the correct answer.

Explanation:

b. An indicator of market strength based on the prices of several specific stocks.

The word stock index describes the overall performance of the stock market to evaluate the market strength. A stock index helps the investors to track the overall performance of stocks over time, based on their prices. Example of stock indexes are- NASDAQ, S&P etc.

According to this description, only option B is correct. Rest all options do not satisfy the definition.

User Zayid Mohammed
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