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The S&P 500 is a widely used index. What is an

index?
A measure, or indicator, of the stock
market often used as a comparison tool of market
performance.
An investment mutual fund that trades like a stock
on a stock market exchange.
A measurement of a stock's volatility compared to
the overall maket.
The marketplace for buying and selling stocks.

1 Answer

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Final answer:

An index is a measure of the stock market used to compare market performance.


Step-by-step explanation:

An index is a measure, or indicator, of the stock market often used as a comparison tool of market performance. It is not a marketplace for buying and selling stocks, nor is it a measurement of a stock's volatility compared to the overall market. One example of an index is the S&P 500, which is a stock market index based on the market capitalizations of 500 large companies.


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