If you're new to the stock market and aren't quite sure what a stock market index is, then this video is for you! In this guide, we'll explain what a stock market index is, and how it's calculated.

This is a quick and easy video, perfect for beginners who are trying to get a basic understanding of the stock market. After watching this video, you'll be able to understand what a stock market index is, and how it's used to measure the performance of stock markets around the world.

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⏰ Timestamps ⏰
00:00 What Is An Index?
00:49 S&P 500 Index Explained
03:42 Major Market Indexes
06:20 How They Are Calculated
08:15 How To Invest

Why are stock market indexes important?
A famous rule out there is to never put all of your eggs in one basket. There are plenty of places your money can be invested but when it comes to the stock market, diversifying into different indexes may be the optimal thing to do. Stock Market Indexes provide great diversity at a low cost, a stress free investing lifestyle, and have been proven historically to achieve great returns for investors.

What are the top stock market indexes??
Throughout this video I discuss in detail the top 3 stock market indexes you may have already heard of.
1. S&P 500 Index
2. Dow Jones Industrial Average Index
3. Nasdaq Composite Index

How are stock market indexes calculated?
Throughout this video I discuss the 3 main formulas for how stock market indexes are calculated.
1. Market Cap Weighted
2. Price Weighted
3. Equal Weighted

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Sources:
- https://seekingalpha.com/article/4211609-u-s-vs-world-rolling-return-comparison
- https://www.slickcharts.com/sp500
- https://seekingalpha.com/article/4502739-average-stock-market-return
- https://www.investopedia.com/insights/introduction-to-stock-market-indices/
- https://bit.ly/3WIMXn1
- https://www.forbes.com/advisor/investing/best-sp-500-etfs/
- https://www.thebalancemoney.com/major-world-stock-market-indexes-4148491

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Disclaimer:
The information provided in this video does not, and is not intended to, constitute legal, tax or financial advice; instead, all information, content, and materials available on this video and on this channel are for general informational purposes only. The presenter is not an attorney, accountant or financial advisor. Viewers of this video should contact their attorney, accountant or financial advisor to obtain advice with respect to any particular legal, tax or financial matter.