The NASDAQ:
A) weights individual stocks equally.
B) gives greater weight to low-tech stocks than does the Dow.
C) gives greater weight to small stocks than does the Dow.
D) has 500 stocks.

Question

Quizplus · Accepted Answer

The NASDAQ Index gives greater weight to small stocks than does the Dow Jones Industrial Average (DJIA). The NASDAQ is a market capitalization-weighted index, meaning it gives more weight to companies with larger market capitalization (total value of outstanding shares). However, it includes more smaller and tech-focused companies than the DJIA, resulting in greater weight to small stocks. The NASDAQ also includes more than 3,000 stocks, not 500.