ABSTRACT
A securities market index is a statistical indicator, benchmark or measure of movements in the general level and direction of prices of financial instruments or securities such as stocks, bonds, money market instruments, commodities, convertible securities, currencies, Guaranteed Investment Contracts, mutual funds and real estate. Approaches to sample selections are numerous and range from strictly objective methodologies to subjective guidelines that take into account common factors such as markets, market coverage, security type, economic sector/industry representation, size, trading volume, liquidity, company performance and the availability and quality of prices. A few leading bond indices that weight members on the basis of market value include the Lehman Brothers Aggregate Bond Index, Merrill Lynch Global Bond Index and Salomon Brothers Broad Investment Grade Bond Index. Worldwide, it is estimated that upwards of 600 securities market indices are compiled and published by not less than 250 stock exchanges and publishing enterprises, including newspapers, investment banking concerns and investment management organizations.
