Stock Market Indices

How the CBOE VIX Index Works to Predict Market Volatility

In the ever-changing landscape of financial markets, assessing market volatility and understanding investor sentiment are crucial aspects of making informed investment decisions. The VIX index, also known as the "CBOE Volatility Index" or the "Fear Index," stands as a prominent barometer for precisely these purposes. Created by the Chicago Board Options Exchange (CBOE) in 1993, the VIX has grown into a widely recognized benchmark, offering insights into market risk and uncertainty.

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An Introduction to Stock Market Indices

The stock market is a crucial component of the global economy, and it serves as a barometer for the overall financial health of a country. Investors and traders alike use various stock market indices to track the performance of different market segments, such as technology, healthcare, or energy. Understanding the stock market indices and how they work is essential for investors to make informed decisions and manage their portfolios effectively.

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