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1. What's short selling? 2. How's the S&P 500 Index compare to the Dow Jones Industrial...

1. What's short selling?

2. How's the S&P 500 Index compare to the Dow Jones Industrial Average?

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Answer #1

1.

SHort selling is sale of asset that is borrowed by the seller or not owned by the seller. It is done when the seller thinks prices are going to go down so he can make profit by selling high

2.

Dow Jones Industrial Average: Oldest and best known, 30 largest bluechip companies, price weighted...Criteria to be included in the list is vague.

S&P500: Started in 1957, newer than Dow Jones, 500 stocks from various sectors of the economy, market capitalisation weighted..Criteria to be included in the list is market capitalisation.

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