index

Vocabulary Word

Definition

While an 'index' is often associated with a list in a book, it also refers to a sign or measure of something. For instance, in economics, an index might measure changes in prices over time.

Examples in Different Contexts

In finance, an 'index' tracks the performance of a group of assets. An analyst might say, 'The stock market index showed a significant rise this quarter.'

Practice Scenarios

Creative

Scenario:

This is a comprehensive book, it contains a wealth of information that should be easy for readers to find, especially the key terms and concepts.

Response:

A thorough index at the end of the book should help readers locate information easily.

Business

Scenario:

Our investment strategy involves tracking the performance of portfolio against broader market trends.

Response:

We indeed need a solid strategy. How about using an index fund that mimics the S&P 500?