On the equity market shares can be traded either through exchange or through over-the-counter markets. On the one hand, this allows companies access to capital; on the other hand, it offers investors ownership opportunity in a particular company – with a potential profit based on the company’s future performance.
Most equity indices are cited either in financial news or by financial services providers. They are used to measure investment portfolio performance (e.g. mutual funds), and indicate investor sentiment on the economy as a whole.
Widely used by both financial professionals and individual investors, trading on multiple indices offers a wide diversification of industrial sectors and national economies. This enables you to participate in broad market moves, and gain exposure to the markets efficiently. Trading stock indices allows taking advantage of market opportunities in a cost-effective way.