Stock Market Indexes For Beginners | The Ultimate Guide

If you're new to the stock market and aren't quite sure what a stock market index is, then this video is for you! In this guide, we'll explain what a stock market index is, and how it's calculated.

This is a quick and easy video, perfect for beginners who are trying to get a basic understanding of the stock market. After watching this video, you'll be able to understand what a stock market index is, and how it's used to measure the performance of stock markets around the world.

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⏰ Timestamps ⏰
00:00 What Is An Index?
00:49 S&P 500 Index Explained
03:42 Major Market Indexes
06:20 How They Are Calculated
08:15 How To Invest

Why are stock market indexes important?
A famous rule out there is to never put all of your eggs in one basket. There are plenty of places your money can be invested but when it comes to the stock market, diversifying into different indexes may be the optimal thing to do. Stock Market Indexes provide great diversity at a low cost, a stress free investing lifestyle, and have been proven historically to achieve great returns for investors.

What are the top stock market indexes??
Throughout this video I discuss in detail the top 3 stock market indexes you may have already heard of.
1. S&P 500 Index
2. Dow Jones Industrial Average Index
3. Nasdaq Composite Index

How are stock market indexes calculated?
Throughout this video I discuss the 3 main formulas for how stock market indexes are calculated.
1. Market Cap Weighted
2. Price Weighted
3. Equal Weighted

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Disclaimer: Certain links on this website lead to products or services that may earn Danny Sully an affiliate commission or referral bonus. As a member of an affiliate sales network, Danny Sully is compensated for directing traffic to partner websites, which may affect the placement or visibility of some products on this site. The information provided in this video is accurate as of its posting date, though some of the offers mentioned may no longer be active.

This content is for entertainment only and does not constitute legal, tax, or financial advice. It is for general informational purposes. The presenter is not a licensed professional. Viewers should consult their attorney, accountant, or financial advisor for advice on specific legal, tax, or financial issues.

[DannySully]

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[lucinhac]

Very helpful🤩 I watched several videos. The simple way you explain, i can understand pretty well. don’t stop making video👏🏻👏🏻
Thx you so much!

[Lizz]

Really like your videos. I do have a question-when it come comes to S&P 500 how does it work if a company in it is no longer preforming well? Are they removed and then replaced with one that now is ? Thank you.

[christinegallo]

😊 I'm learning so much from your videos. Would you recommend owning sp 500, the dow and the nasdaq all together or will that be much of an overlap.

[nylinkz]

Your videos are on point and easy to understand, I gained so much knowledge from you, thank you! Thanks for sharing a image of my country 🇨🇱( minute 3:42)

[khaledelmsayip]

i really like your videos .. can you talk about option ?