World Stock Exchanges and International Stock Indices
- World stock markets refer to stock markets in different countries. Each country has its own stock market, and the stocks of these stock exchanges are measured by indicators called international stock market indices.
- International stock market indices show the average of stocks that reflect the economic performance of a country or region. For example, the S&P 500 index, which includes the stocks of the 500 largest companies in the US, shows the general state of the US economy.
- World stock markets and international stock market indices are important sources of information for investors. Investors can evaluate trends, risks and opportunities in global markets by following the movements of world stock markets and indices.
- There are some important differences between world stock markets and international stock market indices. Some of these are those:
- World stock markets depend on the supply and demand factors that determine the prices of stocks. International stock market indices are based on mathematical formulas calculated according to the weights of stocks.
- World stock markets can be opened and closed in different time zones. International stock market indices are usually calculated and updated at the end of one day.
- World stock markets are traded in different currencies. International stock indices are usually converted to a common currency (for example, the US dollar).