This blog dives deep into the concept of stock indices like the S&P 500, Dow Jones, Nasdaq, KSE-100, etc., explaining:
- What an index is and how it’s created
- Why indices are used as market benchmarks
- How indices reflect overall economic health
- The difference between price-weighted and market-cap-weighted indices
- How index funds track performance
- Famous indices around the world and what they tell us
- How to use indices to guide investment decisions
- Historical returns of major indices compared to individual stocks
This post simplifies technical concepts and empowers readers to understand and track indices confidently.