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8. Understanding the major market indexes Understanding How Indexes Report Data The securities market is tracked by a wide variety of indexes, each of which

8. Understanding the major market indexes Understanding How Indexes Report Data The securities market is tracked by a wide variety of indexes, each of which focuses on a different group of stocks. The following table lists stock quotes from four of the most widely cited indexes: the Dow Jones Industrial Average (DJIA), the NASDAQ-100, the S&P 500, and the AMEX. In interpreting these numbers, it is most important to consider DJIA Index Quotes NASDAQ-100 S&P 500 10,993.90 (+133.09) 2,743.80 (+33.27) 1,344.46 (+19.96) NYSE Index 8,190.46 (+86.51) True or False: Based on the numbers not in parentheses in the previous table, you can tell that NYSE Index stocks were performing roughly three- fourths as well as DJIA stocks at the time this data was collected. False True Complete the table by indicating the number of stocks tracked by each index, as well as the composition of the stocks it tracks. Index DJIA Size Composition stocks NASDAQ-100 stocks S&P 500 stocks NYSE Index Over 2,000 stocks

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