An index based on the 500 largest firms traded in the three biggest stock markets is the
A) NASDAQ.
B) Dow Jones Industrial Average.
C) Standard and Poor's 500 index.
D) Blue Chip index.

Question

Quizplus · Accepted Answer

The Standard and Poor's 500 index (S&P 500) is a market-capitalization-weighted index of 500 large publicly traded companies in the United States. It is based on the stock prices of the 500 largest companies listed on either the New York Stock Exchange or NASDAQ. The index represents about 80% of the total market capitalization of the US stock market. The Dow Jones Industrial Average (DJIA) is based on 30 large companies and is not as comprehensive as the S&P 500. The NASDAQ is a stock exchange, not an index. The Blue Chip index is a price-weighted index that includes 30 stocks, similar to the DJIA.

An Index Based on the 500 Largest Firms Traded in the Three