Course 203: Understanding the News
Stock Indexes
In this course
1 Introduction
2 Stock Indexes
3 The Dow Jones Industrial Average
4 The S&P 500
5 The Nasdaq Composite
6 "Noise" Versus News
7 Negative Earnings Surprises
8 Analyst Upgrades/Downgrades
9 Newsworthy Events
10 The Bottom Line

A stock index is simply a grouping or a composite of a number of different stocks, often with similar characteristics. Stock indexes are typically used to discuss the overall performance of the stock market, in terms of changes in the market price of the stocks as well as how much trading activity there is in any particular period. Three of the most widely followed indexes are the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite.

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