S&P 500 Index
The S&P 500 Index was compiled by Standard & Poor's Company in 1957. The original constituents consisted of 425 industrial stocks, 15 railroad stocks, and 60 utility stocks. Starting from July 1, 1976, its constituent stocks were changed to consist of 400 industrial stocks, 20 transportation stocks, 40 public utility stocks and 40 financial stocks. It uses 1941 to 1942 as the base period, and the base period index is set at 10. It is calculated using the weighted average method, using the listed stock volume as the weight, and weighting the calculation based on the base period. Compared with the Dow Jones Industrial Average stock index, the S&P 500 Index has the characteristics of wide sampling, strong representativeness, high accuracy, and good continuity. It is generally considered to be an ideal target for stock index futures contracts.
Dow Jones Average Price Index
The Dow Jones Average Price Index, referred to as the Dow Jones Average Index, is the most familiar, oldest and most authoritative stock. The base period of the index is October 1, 1928, and the base period index is 100. The calculation method of the Dow Jones stock index has been adjusted several times. It adopts the divisor correction method, that is, instead of directly using the stock index of the base period as the divisor, a new divisor is first calculated based on the changes in the constituent stocks, and then the report is divided by the divisor. The total stock price of the period is calculated to obtain a new stock index. The Dow Jones Industrial Average stock index*** is divided into four groups: the first group is the industrial average, which is composed of the stocks of 30 representative large industrial companies; the second group is the stock prices of 20 railway companies in the transportation industry. Index; the third group is the stock index of 15 utility companies; the fourth group is the comprehensive index, which is an index calculated by adding the 65 stocks in the first three groups. The Dow Jones stock index that people often refer to usually refers to the first group, the Dow Jones Industrial Average.
The Financial Times Stock Index
The Financial Times Stock Index is a stock index compiled by the London Stock Exchange and published in the Financial Times. According to the number of sample stocks, the Financial Times stock index is divided into three types: 30 stock index, 100 stock index and 500 stock index. The commonly used one is the Financial Times Industrial Common Stock Index, whose constituent stocks are composed of the stocks of 30 representative industrial companies. The base period was originally July 1, 1935, and was later adjusted to April 10, 1962. The index is 100 and is calculated using the geometric mean method. The Financial Times Index, which is the subject of the stock index futures contract, is an index compiled from 100 stocks that are frequently traded in the market. Its base period is January 3, 1984, and the base period index is 1,000.
The Nikkei Stock Average
The compilation of the Nikkei Stock Average began in 1949. It is composed of the prices of the first group of 225 stocks listed on the Tokyo Stock Exchange. ． This index, calculated and managed by Nihon Keizai Shimbun Co., Ltd. (NKS), is disseminated through major international price reporting media and is widely used by various countries as a reference to represent the Japanese stock market.
In September 1986, the Singapore International Financial Exchange (SIMEX) launched the Nikkei 225 stock index futures, which became a major historical development milestone. Since then, trading of Nikkei 225 stock index futures and options has also become an integral part of the investment strategies of many Japanese securities firms.
Hong Kong Hang Seng Index
The Hang Seng Index is a stock index compiled by Hang Seng Bank of Hong Kong on November 24, 1969 to reflect the Hong Kong stock market. The constituent stocks of this index are composed of the stocks of 33 representative companies listed in Hong Kong, including 4 types of financial industry, 6 types of public utilities, 9 types of real estate industry, and 14 types of other industries. The Hang Seng Index initially took July 31, 1964 as the base period, and the base period index was 100. The number of issued shares of the constituent stocks was used as the weight, and it was calculated using the weighted average method. Later, due to technical reasons, the base period was changed to January 13, 1984, and the base period index was set at 975.47. The Hang Seng Index has now become a major indicator of Hong Kong's political, economic and social conditions.