- A stock market index is a measure of a stock market, that helps investors compare current price levels with past prices to calculate market performance.
- Stock market indexes come in many different sizes. Some indexes have only a handful of stocks that determine their value, while others take thousands of stocks into account.
3 MAJOR US INDEXES
- Also know as US30
- It is the oldest stock market index in the U.S., It tracks 30 stocks that encompass a wide array of different market sectors, excluding only transportation and utility companies.
- This 30 Stocks are heavily traded that they represent the majority of the market therefore they are a very good indicator of the entire market.
Some of Dow Jones Companies:
- Also known as NAS100, US100CASH
- It is an index of stocks that trade on the Nasdaq Stock Market. Investors often use the Nasdaq as a gauge of the performance of the technology sector, because many of the largest and most influential components of the Nasdaq are tech stock.
Some of Nasdaq Companies:
- S&P 500
- It is a broader index that includes about 500 large-company stocks. Its component stocks get replaced much more frequently, as the index attempts to include a representative mix of companies that reflect the overall U.S. economy.
- They account 70% of the Market.
- Most Professionals use the S&P 500 as their benchmark.
Some of S& P 500 Companies: