S&P Dow Jones Indices

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Context:

• S&P Dow Jones Indices announced Adani Enterprises will be removed from the Dow Jones Sustainability Indices following a Media & Stakeholder Analysis triggered by allegations of stock manipulation and accounting fraud.

Read: https://www.iasgyan.in/daily-current-affairs/short-selling

S&P Dow Jones:

About

• Founded in 1882, S&P Dow Jones Indices LLC is a joint venture between S&P Global, the CME Group, and News Corp.
• It is the largest global resource for essential index-based concepts, data, and research and home to iconic financial market indicators.

Mandate

• It produces, maintains, licenses, and markets stock market indices as benchmarks and as the basis of investable products, such as exchange-traded funds (ETFs), mutual funds, and structured products.

Indices

• The company's best-known indices are the S&P 500and the Dow Jones Industrial Average (DJIA), which were created in 1957 and 1896, respectively.
• The company also manages the oldest index in use, the Dow Jones Transportation Index, created in 1882.

Importance of its Indices:

• A market indexfollows a certain market and gives investors a single number to summarize its ups and downs. It enables the world's institutional (and retail) investors to track a market or market sector without having to aggregate the underlying components.

Dow Jones Sustainability Indices:

• The Dow Jones Sustainability Indices was launched in 1999. These indexes track the performance of sustainability-driven companies around the world.

https://www.republicworld.com/business-news/india-business/adani-enterprises-to-be-removed-from-s-and-p-dow-jones-index-after-its-shares-tank-articleshow.html