Back
Broad-based stock index
A stock index intended to reflect the performance of a stock market as a whole, for example the S&P/TSX Composite Index of the Toronto Stock Exchange or the S&P 500 Index for the U.S. market.
In the United States, the term broad-based stock index is used to describe any index that is not a narrow-based stock index. It relates to derivatives on securities that are under the sole jurisdiction of the Commodity Futures Trading Commission. Derivatives on narrow-based stock indexes are under the joint jurisdiction of the Commodity Futures Trading Commission and the Securities and Exchange Commission.
Synonyms and variations
- Broad-based security index