Understanding How Indexes Report Data The securities market is tracked by a wide variety of...

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Accounting

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. Each of these numbers is used to capture the performance of ___________(Overall market/one region's stock/a given sector of the market) on a given day.

Index Quotes

DJIA NASDAQ-100 S&P 500 NYSE Index
10,984.17 (+131.99) 2,741.38 (+33.00) 1,343.28 (+19.80) 8,183.21 (+85.79)

True or False: Based on the numbers not in parentheses in the previous table, you can tell that S&P 500 stocks were performing roughly half as well as NASDAQ-100 stocks at the time this data was collected.

False

True

Complete the table by indicating the name of the index being described, as well as the number of stocks each index tracks.

Composition Size Index
Primarily stocks from the NYSE, but a few NASDAQ stocks as well _____stocks ______
The biggest (non-financial) firms traded on NASDAQ _____stocks ______
All large NYSE stocks, as well as major AMEX and NASDAQ stocks _____stocks ______
All stocks listed on the big board Over 2,000 stocks ______

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