The Dow Jones Industrial Average: This is the most popular, oldest, and the index that most people are aware of. At this moment in time the Dow only consists of 30 stocks. These stocks however, represent one of the most influential companies in the United States of America. This is also the only major index that is price weighed. In turn meaning that a 1$ change has the same effect on the index regardless of it’s a $20 stock or a $80. This market tends to indicate big change considering it represents about 25% of the market. Being such a high-profile index though it does not represent small or even mid-sized companies whatsoever.
The Nasdaq Stock Market Composite: This index unlike the Dow has over 5000 stocks listed on it. Most of the stocks that are part of this index are technology based. This index does not do a great job of reflecting an image of what the market is like. However, it can give some insight on the direction that technology is heading. The Nasdaq also tends to be heavily influenced by tech giants such as Microsoft.
S&P 500: Financial Professionals tend to look at this as a representation of the market. This is done because this index lists 500 of the most widely traded stocks and leans towards some of the world’s biggest companies. It covers approximately 70% of the markets total worth which is more money than anyone could ever dream of spending. Examining The S&P 500 will give you a much broader understanding of the market than any other index could provide. If you’re going to be using indexes in your investment research this will be your goldmine.
Results for the LFA 181: Siqueira vs. Hernandez event, which occurred on April 5, 2024.