A stock index tracks the prices of numerous stocks that meet specified criteria.

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A stock index is a measurement of the value of a section of the stock market. It tracks the prices of a group of stocks that meet specific criteria, such as being listed on a particular exchange or belonging to a particular industry. Examples of stock indices include the S&P 500, which tracks the 500 largest publicly traded companies in the US, and the FTSE 100, which tracks the 100 largest companies listed on the London Stock Exchange.

A Stock Index Tracks the Prices of Numerous Stocks That