Wednesday, August 31, 2011

How is Stock Market Performance is Measured

Over 9000 companies listed on the 3 main US stock exchange:

  1. New Stock Stock Exchange
  2. NASDAQ
  3. American stock exchange
US stock is represent by many indexes, the most popular:

  1. Standard & Poor 500 index (S&P 500)
  • 500 largest companies in US stock market
  • Represent 70% of total stock market value
  • Calculate by taking the weighted average price of all 500 stocks
  1. Dow Jone Industrial Index (DJI)
  • Consist 30 of largest companies in US

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