Stock Indexes

As you become more financially sophisticated, you will find that many investment managers compare their performance to a various indexes.  Here are a few of the most common stock indexes:

  • The Standard & Poor’s 500 Index – The S & P 500 index,
    The S & P 500 index consists of 500 stocks chosen on the basis of industry, market capitalization, liquidity and other factors.
  • The Dow Jones Industrial Average (DJIA) – popularly known as the Dow,
    This index consists of 30 significant stocks traded on the New York Stock Exchange (NYSE) and the NASDAQ.
  • The Russell 2000 Index,
    This index consists of 2,000 small company stocks
  • Wilshire 5000 Total Market Index (TMWX),
    This index measures the stock performance of all US headquartered equities. includes equities of more than 7,000 companies
  • The Nasdaq Composite Index,
    The index consists of stocks of more than 5,000 companies traded on Nasdaq.
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