Do You Know These Differences Between NASDAQ100, S&P500, And Dow

The S&P 500, which was created by Standard & Poor’s in 1962, is the largest measure of the US economy among the three major indexes. The index value is calculated by weighting each company according to its market capitalization and then a denominator, set by S&P, is applied to produce the final value. A simple calculation is as follows: the total market capitalization of all included shares divided by the denominator or the total market capitalization/denominator. The Dow Jones Industrial Average often referred to as the “Dow”, is the oldest index, dating back to 1896 and is the most well known globally. The Dow represents 30 stocks as determined by the Wall Street Journal. Unlike the S&P 500 and Nasdaq 100, the weights for each component in the Dow Jones Industrial Average are sorted by share price and then divided to get a final value. If you are more interested

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