Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

ABA Bank Index

What it is:

The ABA Bank Index is a composite market index comprised of small retail and community banks.

How it works (Example):

Traded on the Nasdaq, the ABA Bank Index is made up of 440 small banking institutions nationwide. These banks include small-cap retail community banks registered and actively traded on the Nasdaq. The ABA Bank Index has existed since 2003 and has a market capitalization of roughly $150 billion.

Why it Matters:

The ABA Banking Index tracks the performance of small bank stocks. It functions primarily as an indicator of the strength of the U.S. economy and banking sectors.

Related Terms View All
  • Auction Market
    Though most of the trading is done via computer, auction markets can also be operated via...
  • Best Execution
    Let's assume you place an order to buy 100 shares of Company XYZ stock. The current quote...
  • Book-Entry Savings Bond
    Savings bonds are bonds issued by the U.S. government at face values ranging from $50 to...
  • Break-Even Point
    The basic idea behind break-even point is to calculate the point at which revenues begin...
  • Calendar Year
    If Company XYZ starts its fiscal year on January 1 and ends its fiscal year on December...