Which of the following statements seems most appropriate when the Dow Jones Industrial Average increases by 2%?
A) All stocks on the exchange increased by 2%.
B) Only the 30 DJIA stocks increased by 2%.
C) A broad-based market indicator was up by 2%.
D) The S&P 500 index increased by 2%.

Question

Quizplus · Accepted Answer

The Dow Jones Industrial Average (DJIA) is an index that represents the stock performance of 30 large, publicly-traded companies in the US. Therefore, option A and B are incorrect since not all stocks on the exchange increased by 2%, only the 30 DJIA stocks did. Option D is also incorrect since the S&P 500 is a different index than the DJIA. Option C is the best choice since it implies that the increase in the DJIA is representative of a broader market trend.

Which of the Following Statements Seems Most Appropriate When the Dow