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

Bovespa Index

What it is:

The Bovespa Index tracks around 50 stocks traded on the São Paulo Stock, Mercantile & Futures Exchange. The term Bovespa is derived from BOlsa de Valores do Estado de São Paulo, the Portugese name for the exchange.   

How it works (Example):

The Bovespa Index tracks stocks that account for 80% of the total market volume traded in the last 12 months and that were traded on at least 80% of trading days.  

This is an accumulation index, meaning it represents the present value of a portfolio begun on January 2, 1968 with a value of 100. It has been divided by a factor of 10 on 11 occasions since inception.

Why it Matters:

The Bovespa is an important index, as it tracks one of the world's most significant emerging markets, Brazil. Since it is a market cap weighted index, the largest firms tend to have the greatest impact on the Bovespa's value. 

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...