Do you know how to use the different stock indexes? The Dow, NASDAQ and S&P 500 indexes are 3 of the best measurements of trading activity and give investors a clear picture of the overall health of the economy. Each represents a different type of index, calculated and tracked in their own way, reporting real time movements of stock price and market capitalization. I created this infographic to demonstrate the unique features of these indexes and how they can help you along in investing.
The above introductory comments are edited excerpts from a post* by Timothy Sykes (timothysykes.com) entitled Comparing The S&P 500, NASDAQ & The Dow [INFOGRAPHIC].
Sykes goes on to say in further edited excerpts:
Stock indexes are the main tool for investors assessing the right time to invest. They provide an immensely consolidated look at the activity of many stocks that indicate the health of the overall market and industry. Through exchange traded funds and options, there are also options to invest through such indexes.
Getting familiar with the Dow, NASDAQ and S&P 500 indexes and what they can tell us about the market is a great step in building your knowledge as an investor. These tools will continue to be a major part of your arsenal throughout your investing career.
Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
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The Dow 30 is deceptive in what it purports to represent. The manipulation of its performance has been going on since 1928 and it gets further denigrated on September 23rd with a 3 constituent swap which will, in effect, assure that it continues to rise in the long term. Read More »
I call on the financial community to take a critical look at the Dow Divisor. If it is retained investors will continue to be deceived with every new transition from one phase to another and the greatest of all Ponzi schemes will have major financial consequences for every investor. Read More »