A major difference between the Standard & Poor's 500 Index (S&P) and the Dow-Jones Industrial Average (DJIA) is that:

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The DJIA is a price-weighted index, meaning that the value of each stock in the index is based solely on its price per share, while the S&P 500 is a value-weighted index, meaning that the value of each stock is based on factors such as market capitalization and float-adjusted shares outstanding. This fundamental difference in calculation method can result in significant differences in how the two indices perform and can impact the overall composition of each index.

A Major Difference Between the Standard & Poor's 500 Index