The Dow Jones Industrial Index

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The Dow Jones Industrial Average and NASDAQ composite are both significant economic indicators. The Dow Jones was created by Charles Dow in 1896. “The Dow” is a price-weighted average of 30 significant stocks, most of which are traded on the New York Stock exchange. The NASDAQ is the National Association of Securities Dealers Automatic Quotation System. It is the first and largest electronic stock exchange in the world, consisting of more than 4000 companies. Both the Dow Jones Industrial Average and NASDAQ are significant gauges of the current state of the economy. However, the NASDAQ is much larger and includes more than 4000 companies, while the Dow Jones only includes 30 companies. All of the NASDAQ stocks are also traded on the NASDAQ…show more content…
The index also includes a broad range of companies, which allows people to receive a good idea of the general condition and direction of the stock market. The index can also be used to predict the direction of the stock market, which can be helpful to some investors. This economic indicator is also a good tool for comparing the current market to markets in the past because it has been around for many years. The physiological importance that the Dow holds also increases its significance greatly. The Dow is one of the highlights in financial news and even people not familiar with the stock market have heard of it. The importance of the Dow in financial news has a large influence over many people. The NASDAQ also holds a lot of significance as an economic indicator. The main significance of the NASDAQ composite index is that it is a representation of the stocks that are traded on the NASDAQ stock exchange. There is no other exchange that has its own popular index. This index is also very important because it represents a large portion of tech and innovative companies. The NASDAQ is a very good indicator of how the tech segments of the market are doing. The NASDAQ composite index is also the NASDAQ’s main and longest-running index. The physiological importance held by this indicator is also very significant because of how people base the state of the stock market on the state of the index. The index is very
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