MCINTIRE INVESTMENT INSTITUTE

FUNDAMENTAL

STOCK MARKET INDICATORS: INDUSTRIAL AVERAGES.

Indexes provide a means by which the performance of particular types of stocks can be compared to other stocks in the market. They also enable the individual investor to compare or benchmark the performance of his/her stock market investments. Below is a list of some of the most widely used indexes:

·  DOW JONES INDUSTRIAL AVERAGE (DJIA):

The Dow Jones Stock Averages are the most widely quoted stock indicator. It consists of several averages among which the DJIA is the most commonly followed. The DJIA is computed from 30 leading industrial stocks. The companies in this average are among the largest in the nation, usually blue chip companies.

·  STANDARD & POOR’S 500 (S&P 500):

The S&P 500 tracks the performance of large companies similar to the Dow Jones. As its name suggests, it tracks the price of 500 companies, which account for approx 70% of the total market value of the thousands of stocks traded in the U.S.

·  NEW YORK EXCHANGE COMPOSITE INDEX (NYSE):

The New York Stock Exchange Common Stock Index or Composite Index as it is commonly referred to, covers all the stocks that are listed on the exchange. The index comprises of approx 1,500 companies that are traded in the New York Stock Exchange. In addition, there are several subgroup indexes such as Industrials, Utility, Transportation and Finance.

·  AMERICAN STOCK EXCHANGE MARKET VALUE INDEX (AMEX):

The AMEX covers all the common shares that are listed on the American Stock Exchange as well as warrants and American Depository Receipts (ADRs). Basically, it gives the relative change in value of the securities that it covers.

·  NATIONAL ASSOCIATION OF SECURITIES DEALERS AUTOMATED QUOTATIONS (NASDAQ):

NASDAQ indexes (there are seven subgroups similar to those of the NYSE) cover more than 3,000 over-the-counter companies. It has three separate levels in its automated quotation system for investors to use.

·  OTHER INDEXES:

Russell 2000, Moody’s Industrial Average, Wilshire 5000, Morgan Stanley EAFE etc.