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May 24, 2011

Stock Index Construction – Implications for Trading

I am sufficiently extended in the tooth to remember when the only index UK equity investors used as a benchmark was the FT30 share index, in effect the UK’s equivalent of the Dow 30. The number of indices available, and derivatives based encircling them, has multiplied hugely since then. However traders demand to know the properties of different indices, and their quirks of behaviour, before risking their capital betting on them.
Tags: | plants | investing | financial markets |

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