Understanding Equities - Question 74

What are the various indices listed in the financial section of the newspaper? What do they mean?

- The most commonly quoted index is the Dow Jones Industrial Average (Symbol DJII). Thirty of the largest blue chip common stocks traded on the Big Board (NY Stock Exchange) comprise the Dow Jones Industrial Average.

- The Standard &Poor 500 (S&P 500) consist of 500 blue chip stocks. The S&P 500 symbol is SPX. This is the gauge used by most portfolio managers to compare and measure their performance.

- Dow Jones Transportation Average (symbol DJIT) is used to track 20 large transportation common stocks.

- Dow Jones Utilities Average (symbol DJIU) tracks 15 utilities stocks.

- American Stock Exchange (symbol AMEX) is the third largest stock exchange in the United States. This index tracks stocks on this exchange.

- NASDAQ Composite Index (symbol COMP) consists of smaller, usually more volatile companies traded on NASDAQ's National Market System.

- Wilshire 5,000 (symbol WSX) offers the most comprehensive view because it tracks all major NYSE, AMEX and NASDAQ stocks.

- The index for foreign stocks is The Morgan Stanley Capital International Europe Australia Far East Index (EAFE). It tracks 1,080 stocks in 20 countries.