Major index
A major index is like a big list that shows how well a bunch of different companies are doing. It is a way to see if the stock market in general is doing well or not.
Think of it like a report card for a whole class. Each company represents a student, and their grade is based on how well their stock is performing. The major index adds up all the grades to see how the whole class is doing.
Just like how you can tell how smart a class is by looking at their report card, you can tell how well the stock market is doing by looking at the major index. It helps people make decisions about buying and selling stocks. If the index is high, it means a lot of companies are doing well and it may be a good time to buy stocks. If the index is low, it means the overall market is not doing well and it may be a good time to sell stocks.
Think of it like a report card for a whole class. Each company represents a student, and their grade is based on how well their stock is performing. The major index adds up all the grades to see how the whole class is doing.
Just like how you can tell how smart a class is by looking at their report card, you can tell how well the stock market is doing by looking at the major index. It helps people make decisions about buying and selling stocks. If the index is high, it means a lot of companies are doing well and it may be a good time to buy stocks. If the index is low, it means the overall market is not doing well and it may be a good time to sell stocks.