Which of the following is true of the comparison between the Dow Jones Industrial Average (DJIA) stock index and the Standard & Poor's 500 (S&P 500) stock index?
A) The S&P 500 has a broader index than the DJIA.
B) All the firms included in the DJIA are large, whereas all the firms in the S&P 500 are small.
C) The stocks considered for S&P 500 are picked by the editors of The Wall Street Journal, whereas the ones for DJIA are selected by the stockholders.
D) All the DJIA firms are well-established, whereas all the S&P 500 firms are start-ups with low market value.
Correct Answer:
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