Understanding Stock Market Indices: Benchmarks for Assessing Performance
The stock market can be a complex and volatile environment, with thousands of different stocks and investment options to choose from. In order to make sense of it all, investors and analysts rely on stock market indices as benchmarks for assessing overall market performance. These indices provide a snapshot of the market by tracking the performance of a specific set of stocks. Understanding how stock market indices work is essential for investors looking to make informed decisions and evaluate their portfolios effectively.
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