Lessons: Chapter 8 - Understanding the Market
Important Links
Introduction To Stock Market Indexes: from Investopedia
Five Basics You Should Definitely Know About The Stock Market: from Forbes
Stock Indexes from Around the World: from CNBC
History of year-end levels for the Dow, the S&P 500, and the NASDAQ: Historical Index Levels
How the Dow is calculated: Dow Calculation (for Wall Street Journal Online Subscribers)
The companies in the Dow Jones Industrial Average can be found here: Dow Jones Industrial Average Components
Information about the S&P 500 components: The S&P 500
Information about the NASDAQ components: The NASDAQ
Information about the FTSE 100 components: The FTSE 100
Information about the DAX Index components: The Dax
Information about the Nikkei 225: The Nikkei 225
Assignments
8.1: What are the three most prominent stock indexes in the United States today?
8.2: When was the Dow Jones Industrial Average (Dow Jones) established and what were the original 12 stocks in the Dow Jones?
8.3: A value of a stock index can tell you one of the following:
How a the value of a particular stock in the index has changed over time
How the general value of a group of stocks has changed over time
Which specific stock to invest in
Which stocks pay dividends
8.4: There are other prominent stock indexes outside of the Unites States. Identify the countries or regions associated with each of the indexes listed below:
The Dax
The FTSE 100
The Nikkei 225
The Hang Seng
8.5: Which of the 3 most prominent stock indexes in the United States if most closely related to technology stocks?
8.6: What was the percentage change in the value of the Dow Jones between Dec. 31, 2007 and Dec. 31, 2008? What was the cause of this change?
8.7: What was the percentage change in the value of the Dow Jones between Dec. 31, 2015 and Dec. 31, 2016?
