Index that reflects only the change in price of a particular portfolio of stocks or bonds. Unlike a performance index, it is not adjusted for dividend payments, changes in the capital stock, or interest payments.
The most important stock and bond indices are calculated by FWB® Frankfurter Wertpapierbörse (the Frankfurt Stock Exchange) as both price and performance indices. Stock price indices are calculated without taking into account dividend payments or changes in the capital stock of the companies whose stocks comprise the index; bond price indices do not reflect the income generated by reinvesting the discounted average annual interest payment.
Major foreign stock price indices include:
- the Dow Jones Industrial Average (Dow Jones Index) and the Standard & Poor`s-Index for US companies
- the FTSE Index (Financial Times Stock Exchange Index, also known as the "Footsie" Index) for the London financial center
- the Nikkei Dow Jones Average Index (Nikkei Index or NDJA Index) for Japan
- the IHT World Stock Index of the International Herald Tribune for the global stock market.
An example of a foreign bond price index is the Pictet Index for bonds denominated in Swiss francs.
