junior mining stocks. this is Galina Nelson, accountant partner at GNA

Financial Advisors and today we'll be talking about indexes. What is an index?

well in simple terms and index is a single number that summarizes a

collection of data and is often used for benchmark purposes, for comparison. The

financial world creates and uses indexes all the time. For example, how did the

stock market do today?The S&P/TSX composite was up a third of a percent on

Friday, November 15th. The S&P/TSX composite is the Canadian equity markets'

best known index. it summarizes lots of data, share prices of 233 Canada's

largest public companies. Most equity indexes are cap-weighted where a cap is

short for a market capitalization. To check out what the heck market

capitalization is, check out our video over here. The S&P/TSX composite

index is cap weighted as well. An index could also weight each company based on a

share price. A stock trading at $30 would carry three times the impact of the

one trading at $10. This is how one of the world's most famous indexes, the Dow

Jones Industrial Average, is structured. An index is a tool used by investors and

financial managers to describe the market and to compare the return on

specific investment. indexes play an important role in the overall analysis

of the equity markets indexes and their movements provide a great deal of

insight into the economy, investing public's risk appetite and the trends in

investing diversification. Understanding what it indexes makes following the

financial markets more interesting and more fun. you can use free financial

websites such as Yahoo Finance to follow stock index activity. Today I wanted to

talk about the S&P/TSX Venture Composite index. it is an index that serves as a

broad market indicator for the TSX Venture Exchange that lists Canadian

companies that do not meet the listing criteria for the Toronto Stock Exchange.

the index includes, at the time of record in this video,

385 companies. note that it does not include all companies traded on the

venture exchange. it is revised quarterly to add or remove companies in accordance

with eligibility criteria as set by the exchange. 53% of the companies making up

this index are junior mining companies. you can see that index has been pretty

low for the past couple years. My favorite investment advice is to buy

low and sell high. so if you were looking to pick up some TSX Venture listed

stocks the best time for it was in January of 2016. The second best time is now.

and remember to seek out investment advice before making any financial

decisions. on that note thank you so much for watching, leave a comment down below

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see you next time