Before we can look at the specifics of indices or averages, we first need to explore the underlying financial market assets that are included in stock indices: namely stocks, shares, or equities. Shares are a type of security defined as part ownership in a company, usually, one that is publicly listed. This gives the owner of the share an entitlement to the corporation’s earnings and assets, voting rights in major decisions about the company at the Annual General Meeting (AGM), and a dividend payment if there is one (effectively a proportion of the company’s profits). Furthermore, if the company is run profitably and successfully, the hope is that the company’s share price will rise, and the owner of the share will make a capital gain on the value of their shareholding. Stocks and shares are primarily bought and sold on Stock Exchanges.