Course 104:
Understanding Market Indexes
In this course
1 The Dow
2 Calculating the Dow
3 The S&P 500
4 The S&P 500, Part 2
5 Other Indexes

Want to quickly get a pulse on the market? Everyone talks about indexes--the Dow Jones Industrial Average, the S&P 500, the Nasdaq Composite, etc--but most people only have a vague idea of what they actually are.

Let's start with perhaps the most widely followed index in the world: the Dow Jones Industrial Average. Known as just the "Dow" for short, the index is not really an average, nor does it exclusively track heavy industry anymore. The index is composed of 30 large stocks across a wide spectrum of industries. General Motors GM and General Electric GE are the only two companies that have been part of the index since it was created in 1928, and some of the most recent additions include Disney DIS, Intel INTC and Microsoft MSFT. Those aren't exactly industrial names.

Next: Calculating the Dow >>


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