Because the Dow Jones Index Average is based on the movement of 500 large,well-established stocks,many investors believe it reflects price movements for large firms rather than for the general market.

Question

Quizplus · Accepted Answer

The Dow Jones Industrial Average (DJIA) is based on the movement of 30 large, well-established U.S. companies, not 500. The description given matches more closely with the S&P 500, which tracks 500 large-cap U.S. stocks.

Because the Dow Jones Index Average Is Based on the Movement