hi,
please answer the question correctly
*List a financial markets index, explain how it is constructed, and describe how it is used - starting with the Dow Jones Industrial Average, S&P 500, and NASDAQ. What are the differences between these three? What are the advantages/disadvantages of each?
The value of the S&P 500 constantly changes based on the movements of its 500 stocks that it contains. The is computed with the "Weighted Average Market Capitalisation". The market capitalization is based on multiplying the stock price and outstanding shares.
The S&P 500:
It means that Standard and poor, this index tracks the 500 large US companies across a wide span of industries and sectors.
The Dow Jones:
It is names after charles Dow, this index tracks the 30 large cap US companies. Which is industry term very big companies like McDonalds, Cocacola etc.
The NASDAQ:
Nasdaq exchange tend to be deal with only tech companies like Apple, Google etc.
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