Question

What are some of the popular equity's indices, and what do they track? Which is best?

Answer 1

Some of the popular equity indices are Dow Jones Industrial Average, Nasdaq, Standard and Poor 500, FTSE, DAX etc.

These popular equity indices are tracking the movement of various shares in the company and they reflective of the movement of the economy in a particular country and they are also representing the various companies which are reflective of particular sectors.

According to me, Standard and Poor 500, is one of the major indices, and it is reflector of the best movement in the economy because it is comprised of 500 different companies and it is a value weighted index rather than a price weighted index, so it will be giving the appropriate representation to different companies in the economy and it will be helpful in providing with the complete indicator of economic progress in United States of America.