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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

why is the marginal curve u shaped
jake Reply
what is demand function
uju Reply
demand function is the mathematical representation of price and quantity demanded of goods and services at various prices at a given time .
King
Demand function is an equation which shows the mathematical relationship between the quantity demanded of a good and the values of the various determinants of demand.
Bon
why would division of labour without trade not work
Frederick Reply
as far there is an output as a goal... trade can't be exempted... because the sole reason for division of labour is for an effective and efficient output or outcome.. with such exchange trade has taken place. .
Agha-Aiguokhian
Please what is paradox of value
rakia
what is the features of monopoly market? how it is different from monopolistic market?
alisha
how does scarcity described as the efficient byway to allocate resources in a free market?
God Reply
scarcity gives or births a rational thinking to an individual or state economy in the distribution of revenue or income to the right channels of their ends... assuming the market has the features of a free market (free entry and exit, close substitutes, market price control etc)
Agha-Aiguokhian
wath is the meaning the macro economics
Jimcaale Reply
What is the way out of Scarcity
Samuel
a state referenced economic study, the manner or behavioural pattern of a state choice in making economic decisions in satisfying their ends
Agha-Aiguokhian
Thanks brother
Samuel
when total utility is constant, marginal utility do what?
rasheed Reply
Why is it that whenever I ask a question no one hears me out
Dominic
😊😊
Konadu
This is deals with only 1producer 1producer 1consumer
Motasay Reply
Oligopoly
Gh
thanks for you answer
Qaasim
With two buyers n sellers
Motasay
nothing only I study
Qaasim
still oligopoly That is when there is a limited buyer and seller in the industry. There are no perfectly elastic market entry, that is for both the price taker and the seller
Gh
thanks for your advice
Qaasim
welcomed bro
Gh
we can ask our doubt also isn't
Rohit
Yea you can as well
Gh
Like "beauty opportunity cost lies in the eyes of the beholder"discuss with practical examples
Dominic
Criticism of scarcity definition
No Reply
life is all about scarcity. there is a big reason behind that
Hassan
tell me the whole
No
as we are Muslims
Hassan
so what
No
we believe that our Allah. the God of Universe is Examining each and every one on the planet this Scarcity. the only place there is no scarcity is Aakhiro Doomsday
Hassan
i want Explanation ?
No
theory
No
You have came back our book of Quran
Hassan
Make some of our basic needs not available. For example like if we need a particular drugs to cure a virus ohh disease because if the scarcity of it it may lead to death
Motasay
what men gdb
Jimcaale Reply
with men government demand price
Jimcaale
how to draw demand curve
Michael Reply
What are the distinction between trade off and opportunity cost?
Eric Reply
what is monopoly
Mary Reply
What are the sources of monopoly
Mary
Sources of Monopoly Power Monopoly power is influenced by the following factors: Barriers to entry Number of competitors Advertising Degree of product differentiation The larger and more expensive the barriers to entry the greater the monopoly power The smaller the number of competitors in th
edward
monopoly occurs when specific enterprise supplies goods and controls the market.
sade
i think the sources of monopoly are barriers to enrty and product differentiation.
sade
Monopoly is a market structure characterized by a single seller, selling a unique product in the market in which s/he faces no competition, as s/he is the sole seller of goods with no close substitute.
edward
Monopoly is a market structure where the production of goods and services coupled with price determination of such commodities are left in the hands of a sole producer. Such factors are; Perfectly inelastic competition, High market barricade, High cost of raw materials,
Gh
what is price discrimination monopoly
sandra Reply
Charging different sets of consumers different prirces for the same good or service, for reasons not involved in cost of production. There are 3 degrees of price discrimination.
Darren
what are the 3 degree
obed
hello
Oparaugo
What up guys
Divine
what are four sources of monopoly
dora Reply
examples of what cause demand and supply to shift to the left.
Verte Reply
hello
Konadu
hi
Yaman
how are you
Yaman
are you fine
Yaman
hii
Liya
Why is there a trade off between inflation and employment? Give a situation to clear it up please
Kurt

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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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