What is the purpose of share-market indices

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Reference no: EM132973130

Analyse the functions and importance of share-market indices and interpret published sharemarket information.

A stock-market index is a measure of the price performance of a specific sector of a share market.

S&P Indices provides specialist index management services to international stock markets and compiles a range of different market and industry sector indices.

The global industry classification standard (GICS) comprises 10 industry sectors (energy, materials, industrials, consumer discretionary, consumer staples, health care, financials, informational technology, communication services and utilities). Indices representing specific market strengths may be constructed by S&P.

An index may be a share price index or an accumulation index.

There is a wealth of share-market information that is published daily. Investors need to understand and interpret this information.

Indices manages a global industry classification standard (GICS) for share-market industry sector indices. The standard comprises 10 international industry sector indices.

Problem a. What is the purpose of share-market indices?

Problem b. How does the existence of standard international industry sector indices facilitate global investment?

Problem c. Identify and briefly explain the structure of the GICS indices.

Reference no: EM132973130

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