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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