Question

talk about the following stock market indices

1. Dow Jones industrial average
2. Nasdaq Composite
3. CAC 40

Answer 1

a. Dow Jones industrial average- The Dow is the oldest and most commonly followed benchmark on the U.S. stock exchange, composed of 30 major public corporations. The index is composed of a diverse group of blue chip companies such as Pfizer, Boeing, Coca-Cola, Goldman Sachs, Walmart, and Disney to represent a wide cross section of the industry. The DJIA is a "price-weighted" index, meaning it is determined by combining stock prices of the 30 companies and then dividing them by a magic number called the Dow Divisor. The divisor is changed to compensate for stock splits, dividends, or spinoffs that impact Dow's share prices.

b. Nasdaq Composite- To ease the understanding of the Nasdaq stock market trends, and to provide a glimpse of how the technology industry is changing, common stocks and related shares listed on the Nasdaq stock market are aggregated to form the Nasdaq Composite index, also commonly referred to as the Nasdaq index, one of the largest US financial markets indexes alongside the Dow and S&P 500. This is calculated by the progression of all the stocks and other securities listed on the Nasdaq stock exchange alone: Common Stock, American Depositary Receipts (ADRs), Limited Partnership Interests, Ordinary Shares, Real Estate Investment Trusts ( REITs), Shares of Beneficial Interest (SBIs), and Tracking Stocks.

c. CAC 40-The CAC 40 is a French benchmark stock market index. The index represents a capitalization-weighted indicator of the 40 most important stocks among the Euronext Paris '100 largest market caps. It is one of the main national indices of the pan-European Euronext stock exchange system alongside Brussels' BEL20, Lisbon's PSI-20 and Amsterdam's AEX.