Stock market 2 - I presume you have read the basic material...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
I presume you have read the basic material about the stock market I posted. In this essay I want to develop three additional points. First, I am sure that many of you have heard of the “Dow Jones Industrial Average” (sometimes abbreviated as DJIA) or the “Standard and Poors 500” (often abbreviated as the S&P 500). What are these? These are averages of stock prices. Keep in mind that there thousands of stocks traded on stock exchanges. Often we would like to know what happened to the stock market today—did the average stock rise in price or did it fall in price? The Dow Jones Industrial Average and the S&P 500 help answer this question. The Dow Jones Industrial Average is an average (a somewhat complicated average, but I won’t go into that) of the prices of the stocks of 30 large industrial companies. Intel, IBM, Microsoft, GE, GM, and Boeing are among the 30 companies included in the Dow Jones Industrial Average. The S&P 500 is an average of the prices of stocks of 500 large U.S. companies. Most economists think the S&P 500 is a better measure of the stock market’s performance because it includes many more companies than does the Dow Jones Industrial Average. Nonetheless, it’s the Dow Jones Industrial
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Stock market 2 - I presume you have read the basic material...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online