Investopedia

Continue to Site »

PHLX Housing Sector Index - HGX

Filed Under »
Dictionary Says

Definition of 'PHLX Housing Sector Index - HGX'

An index that tracks approximately 20 companies that work directly in the construction market of the United States. The Philadelphia Stock Exchange (PHLX) Housing Sector Index (HGX) is comprised of companies in the building and prefabrication of residential homes, mortgage insurers and suppliers of building material. The HGX was created in January of 2002, and commenced trading on July 17 of the same year with an initial value of 250.

The HGX is calculated as the modified capitalization of the HGX divided by a base market divisor. Similar to the Dow divisor, the HGX divisor changes with stock splits and issues.
Investopedia Says

Investopedia explains 'PHLX Housing Sector Index - HGX'

This index is often referred to as the "Philadelphia Housing Sector Index" and is used to track the strength of the housing market such as home sales and residential real estate values. Essentially, if home prices are up, more construction contracts are signed. This means more revenue for home builders and and an increase in their corresponding shares, which should lift the index up.

Although the index began with an initial value of 250, in February of 2006 the index was subject to a 2-for-1 split. When comparing the value of the index today to the base value, this split needs to be taken into consideration.

Articles Of Interest

  1.

    Why Housing Market Bubbles Pop

    Home price appreciation is not assured. Can you withstand the volatility in this market?

  2. Profit On Your Home's Price - Even If It's Falling

    These investment vehicles can protect you - and even help you profit - when the real estate market falls.

  3. Uncover The Next Real Estate Hot Spot

    Real estate land speculation is a way to get in on a hot investment before a boom hits.

  4. How Will The Subprime Mess Impact You?

    The subprime collapse could mean doom and gloom for housing, equities and the overall economy.

  5. 7 Outstanding Female Investors

    Here are seven women who outperform their male counterparts in the business world.

  6. An Introduction To The Options Industry Council

    The Options Industry Council is an educational organization for options traders. We introduce you to the Council and the online tools available.

  7. Stock Exchanges: A Global Tour

    Check out the history and inner workings of the world's six most well-known stock exchanges.

  8. This Week In Finance - Nasdaq Turns 40

    As the exchange enters its 40th year, it's a good time to examine how the Nasdaq's become one of the world's largest stock exchanges.

  9. What are all of the securities markets in the U.S.A?

    There are three major U.S. financial securities markets which are: New York Stock Exchange (NYSE): NYSE is a stock exchange based in New York. In April 2007, New York Stock Exchange merged ...

  10. The Birth Of Stock Exchanges

    Learn how British coffeehouses helped give rise to the juggernaut that is the NYSE.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  2. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  3. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  4. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  5. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  6. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
Trading Center