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hmm hows the markets do today its a question youve probably heard before but what exactly does it mean the way investors typically measure how the markets are performing is through something called an index you may have heard of a few like the tsx composite in canada the dow jones industrial average and the s p 500 in the us whats an index you say lets back up sounds like its time for another your investing minute episode lets roll the intro [Music] a stock index is a way to track the combined performance of a large group of stocks all at once an index can have a narrow focus like a specific industry or it can be broad-based tracking hundreds or even thousands of stocks from many industries take the s p 500 i mentioned earlier it tracks the performance of 500 large companies listed on american exchanges many fund managers use this index and others as benchmarks to determine whether their investments perform better or worse than the market average investment firms also create mu
