Definition of Indexing:
Indexing is broadly referred to as an indicator or measure of something. In the financial markets, indexing can be used as a statistical measure for tracking economic data, a methodology for grouping a specific market segment or as an investment management strategy for passive investments.
The movement of a machine or part of one from one predetermined position to another in order to carry out a sequence of operations.
Indexing is used in the financial market as a statistical measure for tracking economic data. Indexes created by economists provide some of the market’s leading indicators for economic trends. Economic indexes closely followed in the financial markets include the Purchasing Managers' Index, the Institute for Supply Management’s Manufacturing Index and the Composite Index of Leading Economic Indicators.
Contracting: Adjusting the terms of a long-term contract to account for the effects of inflation, so that neither party takes undue advantage, or unduly suffers the consequences, of continually rising prices.
The action or process of compiling an index.
Investing: Passive investment strategy of buying only the securities included in a stockmarket index, such Standard & Poors 500 (S&P 500). Its advantages include low brokerage expenses and tax efficiency.
How to use Indexing in a sentence?
- There are many indices in finance that reflect on economic activity or summarize market activity - these become performance benchmarks against which portfolios and fund managers are measured against.
- The indexing of the data was vital for the databases health because we were constantly editing and adding to the database.
- Indexing is the practice of compiling economic data into a single metric.
- Sometimes you may need to make a small change to an already agreed upon deal and you must hope the other party is ok with the indexing .
- My job on the website was indexing , which meant finding all the information and putting it into one coherent database for people to look at.
- Indexing is also used to refer to passively investing in market indices to replicate broad market returns rather than actively selecting individual stocks.
Meaning of Indexing & Indexing Definition