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Some measures of stock markets
Measure of the Stock Market Comments
Dow Jones Industrial Average (DJIA): http://indexes.dowjones.com Based on 30 large companies from a diverse set of representative industries, chosen by analysts at Dow Jones and Company. The index was started in 1896.
Standard&Poor’s 500: http://www.standardandpoors.com Based on 500 large U.S. firms, chosen by analysts at Standard&Poor’s to represent the economy as a whole.
Wilshire 5000: http://www.wilshire.com Includes essentially all U.S. companies with stock ownership. Despite the name, this index includes about 7,000 firms.
New York Stock Exchange: http://www.nyse.com The oldest and largest U.S. stock market, dating back to 1792. It trades stocks for 2,800 companies of all sizes. It is located at 18 Broad St. in New York City.
NASDAQ: http://www.nasdaq.com Founded in 1971 as an electronic stock market, allowing people to buy or sell from many physical locations. It has about 3,600 companies.
FTSE: http://www.ftse.com Includes the 100 largest companies on the London Stock Exchange. Pronounced “footsie.” Originally stood for Financial Times Stock Exchange.
Nikkei: http://www.nikkei.co.jp/nikkeiinfo/en/ Nikkei stands for Nihon Keizai Shimbun , which translates as the Japan Economic Journal, a major business newspaper in Japan. Index includes the 225 largest and most actively traded stocks on the Tokyo Stock Exchange.
DAX: http://www.exchange.de Tracks 30 of the largest companies on the Frankfurt, Germany, stock exchange. DAX is an abbreviation for Deutscher Aktien Index .

The trend in the stock market is generally up over time, but with some large dips along the way. [link] shows the path of the Standard&Poor’s 500 index (which is measured on the left-hand vertical axis) and the Dow Jones Index (which is measured on the right-hand vertical axis). Broad measures of the stock market, like the ones listed here, tend to move together. The S&P 500 Index is the weighted average market capitalization of the firms selected to be in the index. The Dow Jones Industrial Average is the price weighted average of 30 industrial stocks tracked on the New York Stock Exchange.

When the Dow Jones average rises from 5,000 to 10,000, you know that the average price of the stocks in that index has roughly doubled. [link] shows that stock prices did not rise much in the 1970s, but then started a steady climb in the 1980s. From 2000 to 2013, stock prices bounced up and down, but ended up at about the same level.

The dow jones industrial index and the standard&Poor’s 500, 1965–2013

The graph shows that S&P and DOW Jones remained relatively low until beginning to increase in the 1980s and then dramatically increasing in the mid- to late-1990s. From 2000 to 2013 prices bounced up and down but ended up at about the same level.
Stock prices rose dramatically from the 1980s up to about 2000. From 2000 to 2013, stock prices bounced up and down, but ended up at about the same level.

[link] shows the total annual rate of return an investor would have received from buying the stocks in the S&P 500 index over recent decades. The total return here includes both dividends paid by these companies and also capital gains arising from increases in the value of the stock. (For technical reasons related to how the numbers are calculated, the dividends and capital gains do not add exactly to the total return.) From the 1950s to the 1980s, the average firm paid annual dividends equal to about 4% of the value of its stock. Since the 1990s, dividends have dropped and now often provide a return closer to 1% to 2%. In the 1960s and 1970s, the gap between percent earned on capital gains and dividends was much closer than it has been since the 1980s. In the 1980s and 1990s, however, capital gains were far higher than dividends. In the 2000s, dividends remained low and, while stock prices fluctuated, they ended the decade roughly where they had started.

Questions & Answers

meaning of Money, worth and wealth, economic goods and service
Mariana Reply
money is just means of exchange denomination of wealth while wealth is the sum total of all assets held in either liquid or non liquid form, where as worth is the exchange value of an asset.
tesfie
hi
Hamdiya
why do we study economics
Hamdiya
We also studied economics in order to know about the human behaviour or phycology towards there needs
sarmad
we study Economics to adjust unlimited human needs with the limited natural resources of the earth in order to achieve susyainabl economic development.
tesfie
what is equilibrium
Daniel Reply
it is intersect point of economics line in graph, but everytime not graph
Ahmet
it is the intersection point of supply and demand curves
tesfie
GDP is domestic gross product. refer my site amanchabukswar.wordpress.com
Aman Reply
Hi everyone
AWOYEMI
hello lovely where am I?
Becky
Good morning
AWOYEMI
morning
Daniel
hi dear bro
tesfie
why does a firm continue operating at a breakeven point
Prince Reply
to retain its customers for later coming profits.
tesfie
this is because the firm's revenu is covering the variable cost so the firm should continuos business
Florencia
and zero profit is a normal profit which covers entrepreneur's profit along with recovering wages, interest and rent.
Farooq
what economic trend can we expect after lifting of 10 year long sanctions in an national economy?
tesfie Reply
difference between change in demand and change in quantity demanded
Maurice Reply
how
kumar
how to change
kumar
For a demand with repect to price. change in demand refers to the shifting of demand curve, where as change in quantity demanded means movement along the given demand curve.
Farooq
According to lional Robbins how did he explain economics
Raphael Reply
He defined economics as a science which studies human behavior as a relationship between ends and scares which has alternative uses.
Emmanuel
What is economics
Nasiru Reply
why are some countries producing inside the ppf
Claire Reply
prove or disprove that balance of trade of trade deficit is a cause of an abnormal demand curve?
Chioma Reply
what's the fixed cost at output zero
Saidou Reply
fixed cost stay the same regardless of the level of output
Luka
example; electricity bill is fixed cost....but when the machinery plant is not active and perhaps so offices are locked up due to unforseen circumstances..... definitely the electric nose dive.... that is a reduction in fixed right? am just saying hope am making a point Luke?
klevic
what are the differences between change in demand and change in quantity demand
Sulaiman Reply
I think change in demand has to do with change from one product to another product....while change in quantity demand has to do with change in terms of units but same product....maybe due price change most especially, seasonal reasons too.
klevic
change in demand has to do with price of that commodity why change in quantity demand has to do with shift an has to do with other factor other than price
FIDELIS
what is consumers behaviour
Marfo Reply
i think it means the reaction expected of consumers in respect of changes in economic activities... most especially changes made by producers~wholesalers~retailers
klevic
importance of income
Emmanuel Reply
Tfor settlement of debt. For purchases. For payment of bills. For daily transactions. For social & recreational enjoyment. For business purposes etc
Oyetunde
thanks
Emmanuel
For investment purposes For security purposes For purpose of forecasting & strategizing.
Oyetunde
what is the real definition of economics
jegede Reply
Economics is the study of the use and allocation of (scarce) resources
demsurf
Jegede, what is the "non" real definition of economics then?
Ernest
Economics is a study of how human use limited resources to fulfil their unlimited want
Musa
the study of how a society use scarce factors of production efficiently so as meet aggregate social demand
Marc
what is oligopoly?
Sailo
Oligopoly can be defines as a market where by there is only tmo or more sellers of a commodity
Paamat
Sory not tmo but two
Paamat

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Source:  OpenStax, Principles of economics. OpenStax CNX. Sep 19, 2014 Download for free at http://legacy.cnx.org/content/col11613/1.11
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