siding companies soffit installation grayslake cement board siding vinyl siding installation siding calculator skokie .. Chicago Drug testing

Understanding Stock Market Indexes

A stock market index is a statistical measure of changes in the securities markets. An index represents a portfolio of securities traded on the market that is considered to be reasonably representative of the market as a whole. Each index has its own method of calculation. It is generally expressed as a change from its base value. For a better understanding of the stock market, an index should be read not at its absolute numerical value but at the percentage change in its numerical value. One cannot invest in an index directly. However, you can invest in index related mutual funds.

Popular indexes in the US

The Standard & Poor's 500 Index ? The S & P 500 index

This index is the most popular index in the world. The S & P 500 index consists of 500 stocks chosen on the basis of industry, market capitalization, liquidity and other factors. It is a leading indicator of US stocks. The index does not include speculative stocks.

The Dow Jones Industrial Average (DJIA) ? popularly known as the Dow

This index consists of 30 significant stocks traded on the New York Stock Exchange (NYSE) and the NASDAQ. It includes companies such as Microsoft, Exxon Mobil, Disney, and General Electrical. The index does not include speculative stocks.

The Dow Jones Utility Average (DJUA)

The DJUA is more of a sector based index as it is a price-weighted average of 15 utility stocks traded in the US. It is sensitive to interest rate changes as utility companies tend to borrow a great deal of money.

The Russell 2000 Index

This index consists of 2,000 small company stocks that are included in the Russell 3000 index. It serves as a bench mark for small company stocks in the US.

Wilshire 5000 Total Market Index (TMWX)

This index measures the stock performance of all US headquartered equities for which price data is readily available. It is one of the broadest stock market indices. It includes equities of more than 7,000 companies traded on US Stock Exchanges.

The Nasdaq Composite Index

It tracks companies traded on the Nasdaq Stock Exchanges. The index consists of stocks of more than 5,000 companies traded on Nasdaq. Most of these companies are technology companies. However, you will find companies in the financial, industrial, transportation and insurance sectors. It also consists of many speculative companies.

Read More Free Investment, Wealth Creation & Personal Finance Articles & Tutorials at: http://www.global-investment-institute.com

The Global Investment Institute has been setup to aid people in the pursuit of a better lifestyle through managing their money effectively, investing wisely and wealth planning for their future.

In The News:

Buy and Hold Investment Philosophy

Wall Street has been preaching the doctrine of Buy and... Read More

Two for the Money

Look back over the years and try to remember how... Read More

Online Trading Strategy: Collecting Cash when Stocks Go UP - It PAYS to Know More than Others

When it comes to stock market trading it PAYS to... Read More

Stealth Bull

If you have been watching the stock market at all... Read More

Duck

Duck! No I don't mean a quack, quack. I meant... Read More

The Seven Mistakes All Novice Traders Make and How to Correct Them

We learnt the following the hard way! If any of... Read More

The Big Bad Bear

The big bad bear is stirring again. So far he... Read More

Will the Stock Market be Lower in October?

The stock market often closes a week in the middle... Read More

Different Types of Mutual Funds

This is a guide to the different types of mutual... Read More

Its Snowing

The Winter Games for the Olympics are coming up soon... Read More

Some Good News for A Change

Before we get into all the good news out there,... Read More

When Should I Sell?

People are always asking me when should I sell my... Read More

Price Targets

Every day in any financial publication you will find the... Read More

The Club

Yesterday I received my monthly issue of MONEY magazine. This... Read More

Advisory Service for You?

It depends on your level of understanding of the market... Read More

Basics of Stock Market

Financial markets provide their participants with the most favorable conditions... Read More

The Skinny on Mutual Fund Investing

Mutual fund investing is a lot like Thai cooking. Everyone... Read More

How (NOT) to Buy Mutual Funds

When it comes to mutual funds, there is a lot... Read More

Trapeze Artist - Swinging with the Stock Market

When we go to the circus we see a trapeze... Read More

Duct Tape

Did you run out to buy that duct tape yet?... Read More

Stock Market Volatility

In my opinion, due to the volatility of stock market... Read More

The Surgeon General

The Surgeon General of the United States says that smoking... Read More

NASDAQ 800?

In November of 2000 when the NASDAQ was trading at... Read More

Fake Money

Reach in your pocket and take out that big roll... Read More

Successful Trading ? Taking Profits - Part 1

So you're started trading, you bought some positions with your... Read More

led parking top led manufacturers Pete's produce ..
led parking top led manufacturers Pete's produce ..