An index is a grouping of stocks, perhaps the best-known index is the Dow Jones. The value of an index is usually one share of each of the stocks that make up the index. An index allows you to benefit from moves of an overall sector as well as the stocks making up the index.
Indices include the S&P500, the Germany 30, the France 40 as well as the NASDAQ and the FTSE 100. You can trade a variety of global indices with GPP Markets.
Equity indices have gained in popularity as index prices have significantly appreciated over the past several years. As more private companies underwent initial public offerings to raise equity from the capital markets and became publicly-traded, the capitalization of the global equity markets dramatically expanded and now exceeds US$ 50 trillion.
Most major financial centers have at least one equity index and offer traders with exposure to companies domiciled in the U.S., Europe, Asia, and elsewhere.