16. Stock Market Indices and Benchmarks

In this section

• 16.1 Major Stock Market Indices
  • Dow Jones Industrial Average (DJIA) - Understanding the Benchmark of U.S. Market Health
    Explore the Dow Jones Industrial Average (DJIA), a cornerstone of financial markets, its history, composition, and significance in the investment landscape.
  • S&P 500 Index: Understanding the Backbone of U.S. Equities
    Explore the S&P 500 Index, a cornerstone of the U.S. stock market, and its significance in investment portfolios. Learn about its composition, weighting methodology, and role in financial markets.
  • NASDAQ Composite: Understanding the Tech-Heavy Index
    Explore the NASDAQ Composite Index, a key indicator of the technology sector and growth companies, with insights into its composition, weighting, and significance.
• How Stock Market Indices Are Calculated: A Comprehensive Guide
  Learn how stock market indices are calculated, including methods like price-weighted, market capitalization-weighted, and equal-weighted indices. Understand adjustments for corporate actions and the processes of rebalancing and reconstitution.
• Using Indices as Market Indicators
  Discover how stock market indices serve as vital market indicators, reflecting investor sentiment, economic conditions, and helping investors benchmark performance.
• Investing in Index Funds and ETFs: A Comprehensive Guide
  Explore the world of index funds and ETFs, learn about passive investing, and understand how these investment vehicles can help you achieve your financial goals.