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NEWS AND MAGAZINE TEMPLATE
Index
Glossaries
| Term | Main definition |
|---|---|
| Index | 1) A security market index, such as the Standard & Poor’s 500 Index, is a statistical composite that tracks the price level and performance of a basket of many securities, typically within a specific investment asset class. Indexes exist for various stock and bond markets and are typically set at a round number such as 100 at a particular point in time. See also Dow Jones Industrial Average and Russell 2000. 2) The index can also refer to the measure of the overall level of interest rates that a lender uses as a reference to calculate the specific interest rate on an adjustable-rate loan. The index plus the margin is the formula for determining the interest rate on an adjustable- rate mortgage.
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