Taiwan Weighted closed in negative terrain on April 25

This year the markets have registered a constant volatility. (Infobae)

negative day for Taiwan Weighted, which ended on Tuesday, April 25, with notable drops of 1.64%, to 15,370.73 points. He Taiwan Weighted marked a maximum volume of 15,639.49 points and a minimum volume of 15,353.22 points. The trading range for the Taiwan Weighted between its highest and lowest point (maximum-minimum) during this day it stood at 1.83%.

In relation to the last week, the Taiwan Weighted It accumulates a decrease of 3.14% and for a year it has still accumulated a decrease of 9.54%. He Taiwan Weighted it stands 3.71% below its maximum this year (15,963.55 points) and 8.25% above its minimum price so far this year (14,199.13 points).

A stock index is an indicator that measures how the price of a certain set of assets evolves, so it takes data from various companies or sectors of a fragment of the market.

These indicators are used mainly by the stock markets of the countries and each one of them can be integrated by companies with different specificities, such as having a similar market capitalization or belonging to the same business type. There are also some indices that only consider a handful of shares to determine its value or others that consider hundreds of shares.

Stock indices serve as an indicator of confidence in the stock market, business confidence, the health of the national and global economy, and the performance of investments in stocks and shares of a company. Generally, if investors are not confident, stock values ​​tend to fall.

Likewise, they work to measure the performance of an asset manager and allow investors to make a comparison between profitability and risk; measure the opportunities of a financial asset or create portfolios.

These types of indicators began to be used at the end of the 19th century after the journalist Charles H. Dow. To carefully investigate how the shares of companies tended to rise or fall together in price, he created two indices: one that contained the 20 largest railway companies (as it was the most important industry at the time), as well as 12 shares of other types of businesses

Today there are various indices and they can be grouped based on their location, sectors, company size or even the type of asset, for example, the US Nasdaq index is made up of the 100 largest companies mostly related to technology. such as Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Facebook (FB), Alphabet (GOOG), Tesla (TSLA), Nvidia (NVDA), PayPal (PYPL), Comcast (CMCSA), Adobe (ADBE) .

Each stock index has its own way of being measured, but the main factor is the market capitalization of each company that integrates it. This is obtained by multiplying the value of the day of the bond in the corresponding stock market by the total number of shares that are in the hands of investors.

Firms listed on the stock market are required to present a balance sheet of their composition. Said report must be disclosed every three or six months, as appropriate.

Reading a stock index also requires analyzing its variations over time. New indices always open with a fixed value based on the prices of the securities on their start date, but not all follow this method. Therefore, it can be misleading.

If one index grows 500 points in one day, while another only adds 20, it might appear that the former outperformed. However, if the first started the day at 30,000 points and the other at 300, it can be assumed that, in percentage terms, the gains for the second were more important.

Among the main stock indices in the United States is the Dow Jones Industrial Average, better known as Dow Jones, made up of 30 companies. Similarly, the S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Finally, comes the Nasdaq 100, which brings together 100 of the largest non-financial firms.

On the other hand, the most important indices in Europe are the Eurostoxx 50, which covers the 50 most important companies in the euro area. In addition, the DAX 30, the main German index that contains the most outstanding companies on the Frankfurt Stock Exchange; the FTSE 100 of the London Stock Exchange; the CAC 40 of the Paris Stock Exchange; and the IBEX 35, of the Spanish stock market.

On the Asian continent, the main stock indices are the Nikkei 225, made up of the 225 most important companies on the Tokyo Stock Exchange. There is also the SSE Composite Index, which can be considered the preponderant of China, made up of the most prominent companies on the Shanghai Stock Exchange. The same role played by the Hang Seung Index in Hong Kong and the KOSPI in South Korea.

With regard to the Latin American region, there is the IPC, which contains the 35 most influential firms on the Mexican Stock Exchange (BMV). At least a third of them are owned by tycoon Carlos Slim.

Another is the Bovespa, made up of the 50 most important companies on the Sao Paulo Stock Exchange; the Merval from Argentina; the IPSA of Chile; the MSCI COLCAP of Colombia; the IBC of Caracas, made up of 6 companies from Venezuela.

Likewise, there are other types of global stock indices such as the MSCI Latin America, which includes the 137 most important companies in Brazil, Chile, Colombia, Mexico and Peru.

Similarly, there is the MSCI World, which includes 1,600 companies from 23 developed countries; the MSCI Emerging Markets, made up of more than 800 companies from developing countries; and the S&P Global 100, made up of the 100 most powerful multinational firms on the entire planet.

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