If you've ever followed financial news, you've likely heard about the S&P 500, Dow Jones, NASDAQ Composite, or FTSE 100. But what exactly are these entities? In simple terms, they're stock indices - an integral part of the financial markets. In this beginner's guide, we'll delve into the world of stock indices and uncover their role and significance. What is a Stock Index? A stock index is a benchmark that tracks the performance of a group of stocks, providing a snapshot of a particular section of the stock market. It's calculated from the prices of selected stocks, typically weighted by market capitalization, price, or other factors. Indices are used to gauge market trends and compare the returns of specific investments. Popular Stock Indices Around the Globe There are several stock indices worldwide, each representing a different segment of the market. We'll discuss four of the most renowned ones. S&P 500: The Standard & Poor's 500 is an i...