- Representativeness
An index represents a selection from a population, which should be represented as accurately as possible and according to predefined criteria. - Replicability
To replicate an index, the shares of the index constituents must be purchased, taking their index weightings into account. The liquidity of the shares is of great importance here. - Stability
Additions and removals of index constituents should not occur too frequently and should be limited. - Transparency
The rules and index data are publicly available. - Reliability
No omissions in the calculation.
What are stock market indices?
Definition
Index types
Types of weighting
Requirements for an index
Index classification criteria
Can I trade an index?
