NYSE Composite Index

In 1966 the New York Stock Exchange (NYSE) established the NYSE Composite Index to provide a comprehensive measure of market trends in the share market. Many investors will look at the index regularly when making decisions as to whether they should buy or sell.

The NYSE Composite Index measures the performance of all common stocks listed on the New York Stock Exchange, and encompasses four subgroup indexes: utility, industrial, transportation, and finance.

The index tracks the price movement of NYSE common stocks, and is adjusted to eliminate the effects of capitalization changes, new listings and delistings.

The market value of each stock is calculated by multiplying the price per share of the stock by the number of shares listed. The value of the index can give you an indication of which way the market is moving. When people buy and sell stock, the indexes go up and down with the value.

* Next: What is Dow Jones Indexes?

Author

Kelvin Wong Loke Yuen is an experienced writer with a strong background in finance, specializing in the creation of informative and engaging content on topics such as investment strategies, financial ratio analysis, and more. With years of experience in both financial writing and education, Kelvin is adept at translating complex financial concepts into clear, accessible language for a wide range of audiences. Follow him on: LinkedIn.

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