What is a stock market index? Option: "A type of mutual fund focused on specific sectors", "A collection of stocks chosen based on specific criteria, reflecting a market segment's performance", "A financial instrument used to hedge against market volatility", "A government-issued bond used to raise capital"

What is a stock market index?

What serves as a benchmark that reflects the overall performance of a specific stock market segment?

What does a sector-specific index represent?

How can a stock market index be used for benchmarking?

What is the primary function of a stock market index?

What is the primary factor that influences the returns of an index, regardless of the number of stocks it includes?