Question

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.

Answer 1

A stock index is an indicator of market strength based on the prices of several specific stocks. It provides a snapshot of the overall performance of a particular stock market or industry by tracking the changes in the prices of a selected group of stocks.

Step-by-step explanation:

A stock index is an indicator of market strength based on the prices of several specific stocks.

It provides a snapshot of the overall performance of a particular stock market or industry by tracking the changes in the prices of a selected group of stocks.

A stock index allows investors and analysts to monitor the performance of the market and make comparisons over time.