Difference Between Ap And Dow Jones Industrial Average

Satisfactory Essays
The difference between the Dow Jones Industrial Average and the Standard and Poor’s 500 is that the Dow Jones Industrial Average is the price weighted average of 30 stocks, on the other hand the S&P500 is a market value weighted index of 500stcoks.
The S&P500 is composed of 5oo companies chose based on: unadjusted market capital of at least $5.3 billion, and when you add there most recent four quarters there earning must be positive.
The Dow jones Industrial Average is composed of 30 biggest and most reputable companies in the US.
They are both used by investors to conclude the general movement of the U.S stock market. The S&P500 represent a broader sample of U.S stock market and is calculated by giving weights to each stock according to their
Get Access