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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
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 Index Quotes DJIA NASDAQ-100 S&P 500 NYSE Index 8,190.46 (+86.51) 10,993.90 (+133.09) 2,743.80 (+33.27) 1,344.46 (+19.96) 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. O True O False Complete the table by indicating the number of stocks tracked by each index, as well as the composition of the stocks it tracks. Size Composition Index DJIA stocks NASDAQ-100 stocks S&P 500 stocks NYSE Index Over 2,000 stocks 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 how they compare to one another how they have changed over a period the absolute values Index Quotes DJIA NASDAQ-100 S&P 500 NYSE In 10,993.90 (+133.09) 2,743.80 (+33.27) 1,344.46 (+19.96) 8,190.46 0.027 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. O True False Complete the table by indicating the number of stocks tracked by each index, as well as the composition of the stocks it tracks. Index Size Composition DJIA stocks NASDAQ-100 stocks S&P 500 stocks NYSE Index Over 2,000 stocks Technology stocks 7 Primarily stocks from the NYSE, but a few NASDAQ stocks as well All stocks listed on the "big board" The biggest (non-financial) firms traded on NASDAQ Manufacturing stocks All large NYSE stocks, as well as major AMEX and NASDAQ stocks Automobile industry stocks
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