Market Indices

Creating a market index involves grouping company shares together, and their values are aggregated as a weighted average, with larger companies exerting a greater influence on the index's value. Companies of comparable size and value are typically grouped together. The common expression of the market being "up" or "down" pertains to the movements of stock market indices, reflecting increases or decreases in their values.

When you own shares in a company that distributes dividends, you'll receive dividend payments. In the event that a company experiences success and achieves profit growth over time, the dividend amount it disburses has the potential to increase.