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Multiple Choice
The ____ Industrial Average is an index tracking 30 of the most influential American companies.
A
S&P 500
B
Russell 2000
C
NASDAQ
D
Dow Jones
Verified step by step guidance
1
Understand the concept of stock market indices: Stock market indices are tools used to measure the performance of a specific group of stocks, representing a segment of the market.
Learn about the Dow Jones Industrial Average (DJIA): The DJIA is one of the oldest and most well-known indices, tracking 30 large, publicly-owned companies in the United States.
Compare the Dow Jones Industrial Average to other indices: The S&P 500 tracks 500 large-cap companies, the Russell 2000 focuses on small-cap companies, and NASDAQ primarily includes technology and growth-oriented companies.
Recognize the significance of the Dow Jones Industrial Average: It is often used as a benchmark to gauge the overall health of the U.S. economy and stock market.
Apply this knowledge to identify the correct answer: The Dow Jones Industrial Average is the index tracking 30 of the most influential American companies.