Market Basket

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Dictionary Says

Definition of 'Market Basket'

A subset of products or securities that is designed to mimic the performance of an overall market. Market baskets contain a fixed selection of items, which are used to track such things as inflation, prices or performance levels.
Investopedia Says

Investopedia explains 'Market Basket'

For investors, the market basket is the principal idea behind index funds. A sample of stocks, bonds or other securities are placed in a portfolio that is expected to represent all aspects of the market. This provides investors with a benchmark against which to compare their investment returns.

Another popular market basket relates to the Consumer Price Index (CPI), which tracks a variety of consumer goods. The CPI looks at the price levels of consumer products and provides an estimate for inflation.
Search results for

'Market Basket'

  • Inflation: How Is It Measured? | Investopedia

    http://www.investopedia.com/university/inflation/inflation2.asp
    ... To do this, a number of goods that are representative of the economy are put together
    into what is referred to as a "market basket." The cost of this basket is ...

  • The Consumer Price Index: A Friend To Investors

    http://www.investopedia.com/articles/04/102004.asp
    ... The base-year market basket, of which the CPI is composed of, is derived from detailed
    expenditure information collected from thousands of families across the ...

  • The New World Of Emerging Market Currencies

    http://www.investopedia.com/articles/forex/07/emergingmarketcurrencies.asp
    ... dollar. In order to protect the wild fluctuations in the market, a
    trade-weighted basket is instituted to back the currency. Recently ...

  • The Money Market: A Look Back

    http://www.investopedia.com/articles/06/moneymarketlookback.asp
    ... Also, volatility is likely to remain lower in the cash market, an argument ... accounted
    for because countries are usually slow in adjusting the basket they use in ...

  • Series 7 Study Guide - Portfolio Management - Market Indexes and ...

    http://www.investopedia.com/exam-guide/series-7/portfolio-management/market-index-averages.asp
    ... An index is a formula for measuring changes in a basket of stocks against a base
    date and value. Market Average An example of an average would be the famous ...

  • Forex Currencies: Emerging Market Currencies | Investopedia

    http://www.investopedia.com/university/forex-currencies/currencies10.asp
    ... In contrast, many emerging market countries do not allow their currencies to float ...
    This foreign currency is commonly the US dollar or a "basket" (group) of ...

  • For Maximum Market Returns, Get Creative With Hedges

    http://www.investopedia.com/articles/trading/09/creative-hedges.asp
    ... Sector/Market Risk - Isolating one opportunity in a given sector often involves
    taking an opposing position in the sector's ETFs or a basket of competing stocks ...

  • Currency ETFs Simplify Forex Trades

    http://www.investopedia.com/articles/forex/07/currency-ETFs.asp
    ... Instead, they decide to leave all of their eggs in their stock market basket and
    hope the bulls win. Don't let that be you. (Want to give currencies a shot? ...

  • How Brokers Can Avoid A Market-Maker's Tricks

    http://www.investopedia.com/articles/financialcareers/06/mmakertricks.asp
    ... But seeing your "market order" in his basket of orders to be filled, he knows that
    you are giving him a carte blanche - in other words, that you are ...

  • Deadly Flaws In Major Market Indicators

    http://www.investopedia.com/articles/economics/11/flaws-in-market-indicators.asp
    ... When reviewing market projections based on economic indicators, investors need to
    understand ... reflect the weighted average of prices of a basket of consumer ...

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