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Glossary

Index Price

1 min read

An index is a measurement of the price of multiple assets simultaneously. Indices commonly measure assets that are similar to each other. An index may weigh all the assets equally or put extra emphasis on certain assets. The S&P 500 is a commonly referenced index for large U.S. equities.

Related Terms
Equity
Equity is ownership of anything with value, representing both the assets and liabilities of that ownership. The total shareholders’ equity in a company is the sum of all assets minus all liabilities.
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Price Discovery
Price discovery is the process of determining an asset’s price. This happens naturally as traders place orders.
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Consumer Price Index (CPI)
CPI measures price levels by taking a weighted average of a basket of several goods. This is used to assess the purchasing power of a currency.
Learn more.
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