Level: Beginner

This course provides an introduction to indexes. You will learn what an index is, how it is used, and how index constituents are selected. We will discuss what it means for an index to be float-adjusted, as well as how index values are calculated, and how those values are used to calculate performance.

Contributed By: FTSE Russell
Lesson: #1

What is an index?

The Main Goals: Understand what an Index is; comprehend how indexes are used; and discover how index constituents are selected.

The Main Goals: Learn about different types of indexes; and find out what it means for an index to be float adjusted.

The Main Goals: Traders’ Academy Students Can: Understand how index values are calculated Learn how those values are used to calculate performance Discover why index values vary widely across indexes and index providers Learn the difference between price return and total return index values

The Main Goals: Understand why index selection matters; comprehend how indexes serve as the basis for index-tracking investment products; and find out why index governance is important.