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A Complete "How To" Guide for
investing in Stocks, Bonds and Mutual Funds
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You are here:
Investing > Stock Market Index System
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| Information on Stock
Market Index Trading System |
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What is a stock market index?
In the stock market world, you need a way to
compare the movement of the market, up and down,
from day to day, and from year to year. An index
is just a benchmark expressed as a number that
makes it possible to do this comparison.
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Dow Jones Industrial Average
The number one watched stock market index is the
Dow Jones Industrial Average.
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S&P 500
(Standard and Poor’s)
The S&P 500 is thought of as representing the
500 largest American companies. The S&P 500
represents about 80% of the total value of the
American stock markets.
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Other S and P Indexes
Represents companies from the 500th to the 900th
largest on all three major exchanges. Many of
these 400 companies are on their way to becoming
an S&P 500 stock.
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The NASDAQ
Originally (beginning 1973) tracking just the
100 largest stocks, since 1996 the number
reported represents all of the exchange's listed
issues.
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Wilshire Indexes
Currently about 10,000 companies, it represents
all stocks listed on all three exchanges.
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Barra Indexes
The 250 companies that make up the half of the
S&P 500 with the highest price-to-book ratios.
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Russell (Frank) Indexes
The 3,000 largest market-cap companies on the
Nasdaq.
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EAFE Index
Benchmark for over 1,000 stocks in 20 countries.
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