Question

Match the description to the correct index.

1. An price-weighted average of 30 stocks.

2. The best measure of overall market performance.

3. A market-value weighted index heavily weighted in technology stocks.

Dow Jones Industrial Average

S&P 500

Nasdaq

Answer 1

1. An price-weighted average of 30 stocks.

The Dow Jones Industrial Average, or simply the Dow, is a stock market index that shows how 30 large, publicly owned companies based in the United States have traded during a standard trading session in the stock market.

2. The best measure of overall market performance.

S&P 500 500 component stocks weighted by market cap is the best representation of the broad market movements

3. A market-value weighted index heavily weighted in technology stocks.

Nasdaq If you're interested in tech, then you may have more interest in the Nasdaq. Just know that you're not looking at the market in a broad sense with that index, you're looking disproportionately at the tech segment.