share index: meaning, definition, pronunciation and examples
C1-C2Formal, Technical, Financial
Quick answer
What does “share index” mean?
A statistical measure of the value of a section of the stock market, calculated from the prices of selected shares.
Audio
Pronunciation
Definition
Meaning and Definition
A statistical measure of the value of a section of the stock market, calculated from the prices of selected shares.
A composite figure used to represent the overall performance of a group of publicly traded companies on a stock exchange, serving as a benchmark for investors and the economy.
Dialectal Variation
British vs American Usage
Differences
Both varieties use the term identically. The indices themselves have different names (e.g., FTSE in UK, Dow Jones/S&P 500 in US).
Connotations
Same financial/economic connotations in both regions.
Frequency
Equally frequent in business/financial contexts in both the UK and US.
Grammar
How to Use “share index” in a Sentence
The [NAME] share index rose/fell by X points.to track/benchmark against a share indexto be listed on a share indexVocabulary
Collocations
Examples
Examples of “share index” in a Sentence
verb
British English
- The company aims to be share indexed by the end of the year.
- Funds are share-indexed to track the market.
American English
- The portfolio is share-indexed to mirror the S&P 500.
- They decided to share-index their investments.
adverb
British English
- The fund performed share-index linkedly.
adjective
British English
- Share-index funds are popular for long-term savings.
- He follows a share-index tracking strategy.
American English
- Share-index futures are traded on the exchange.
- She invested in a low-cost share-index ETF.
Usage
Meaning in Context
Business
The share index is a key indicator of market sentiment and economic health.
Academic
The study analysed the correlation between GDP growth and the movement of the primary share index.
Everyday
The news said the share index dropped today, which might affect people's pensions.
Technical
The capitalisation-weighted share index is rebalanced quarterly based on free-float adjusted market capitalisation.
Vocabulary
Synonyms of “share index”
Strong
Neutral
Weak
Vocabulary
Antonyms of “share index”
Watch out
Common Mistakes When Using “share index”
- Using 'share index' to refer to a single company's stock price.
- Saying 'shares index' (plural 'shares' is less common).
- Confusing 'share index' with 'share price index' (they are synonymous).
FAQ
Frequently Asked Questions
Yes, they are essentially synonymous. 'Stock index' is more common in American English, while 'share index' is frequent in British English, but both terms are used interchangeably globally.
It means the company's stock has been selected to be part of the group of stocks whose prices are used to calculate the index. This often leads to increased demand for the stock from index-tracking funds.
It is grammatically possible but non-standard. The standard compound noun is 'share index' (using 'share' attributively, like 'car park'). 'Stock index' is more common if you want to imply plurality.
An exchange (e.g., London Stock Exchange) is the physical or electronic marketplace where shares are bought and sold. A share index (e.g., FTSE 100) is a calculated number that tracks the performance of a selected set of shares traded on one or more exchanges.
A statistical measure of the value of a section of the stock market, calculated from the prices of selected shares.
Share index is usually formal, technical, financial in register.
Share index: in British English it is pronounced /ˈʃeər ˌɪndeks/, and in American English it is pronounced /ˈʃer ˌɪndeks/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “A rising tide lifts all boats (related concept)”
- “Bellwether of the market”
Learning
Memory Aids
Mnemonic
Think of a SHARE INDEX as an INDEX (list/measure) of the most important SHAREs (stocks) in a market.
Conceptual Metaphor
THE MARKET IS A PATIENT (the index takes its temperature); THE MARKET IS A BODY OF WATER (the index measures its tide/level).
Practice
Quiz
What is the primary function of a share index?