Economy: The AEX index explained

Miscellaneous JustaSurname July 25, 2016 0 12
Most people do when they think of the AEX no further that it has something to do with the stock exchange in Amsterdam. People who invest money in shares will depend on the developments of the AEX. AEX stands for ?? Amsterdam Exchanges ??, the English name for stock exchange in Amsterdam. Other major stock markets of Frankfurt, Paris, London and New York. In the United States, the major stock market indexes, the Dow Jones and the Nasdaq.

What is a stock market index?

A stock market index shows the trends of many stocks that are traded on a stock exchange per day. It says something about the direction in which share prices are moving. For people who are trading this is an important subject of their existence. These people have put a lot of money in those shares, and are completely dependent on what the stock market is doing ?? ??. If the shares are being cut, most shareholders purchase the shares and hope they will rise quickly to sell them at a profit. When the shares are at its peak, the shareholders sell the shares as well. If you are a shareholder, shares many of which have one day to absolutely nothing more valuable, such as a company is bankrupt, the shareholder is also bankrupt. Economists maintain the state of the stock market too. It may be a clue in which direction the economy will develop.

The price of shares

A share is nothing but a small piece of business. If you have for example ten shares of AKZO in possession, you can say that you are a co-owner of the AKZO. You can buy shares of NV ?? s at the fair. Usually these are existing shares of companies. So if anyone has shares of AKZO which from want, you can buy there. Holders of shares are entitled to a bit of profit a company makes, called the dividend. If the shareholders expect profits of AKZO rises, they can sell the shares because the AKZO pays less dividends. If the shares are in danger of falling, people want to pay less money. Then drops the share price.

The determination of the index

It comes daily to decrease the price of certain companies and others rise once again. Companies calculate the index as:
The number of shares which the company counts in the index multiplied by the value of the shares today, provides a number of index points. With that index points you can determine the value of the AEX on that day.

A basket of shares

The AEX index is a basket where a number of shares of a shareholder in it. The total value of the shares, the value of the AEX index. The index is a level meter for the development of the fair.
Each year the index was revised. That means that dysfunctional companies are thrown out and there is room for new, clean ?? ?? businesses.