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:

  1. How a the value of a particular stock in the index has changed over time
  2. How the general value of a group of stocks has changed over time
  3. Which specific stock to invest in
  4. 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:

  1. The Dax

  2. The FTSE 100

  3. The Nikkei 225

  4. 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?

 

> Answers to Chapter 8 Assignments