If you are new in the stock market and just open your trading account and was wondering how to trade in NASDAQ and how to trade in Dow Jones, and first you have to know about what is Dow Jones and what is S&P 500 and there are many other indexes too.
Total number of stock exchanges in the United States
So there are 13 stock exchanges in the United States and the New York Stock Exchange commonly known as and NYSE it is the largest exchange in the world in terms of market capitalization and rest all are small stock exchanges in the United States of America than what is Dow Jones Industrial Average commonly known as Dow Jones Dow 30 and what is S&P 500 these are the aggregates that tell the position of the whole stock market.
What is Dow Jones?
Dow Jones or the Dow Jones Industrial Average also known as Dow 30 is an American stock market index that tells the position of 30 large public-owned blue-chip companies trading in the New York Stock Exchange and in the Nasdaq.
Dow Jones was named after Charles Dow and Edward Jones in 8096 they are both business partner.
These 30 blue-chip companies and the wastage of these companies is kind of vague and the companies which are added in Dow Jones are all leaders in the different industries and the member of the committee May replace more than one company at a time when the index come for a review.
Dow Jones components
This is the list of companies that are added in the Dow Jones Industrial Average component with their symbol and when they are added as of October 2021.
|The Coca-Cola Company||KO||1987|
|The Home Depot||HD||1999|
|Johnson & Johnson||JNJ||1997|
|Merck & Co.||MRK||1979|
|Proctor & Gamble||PG||1932|
|The Travelers Companies||TRV||2009|
|Walgreens Boots Alliance||WBA||2018|
|The Walt Disney Company||DIS||1991|
What is standard and poor’s 500 index or S&P 500
Just like Dow Jones it is the index of 30 blue-chip companies, the S&P 500 index is the weighted index of the 500 largest publicly-traded companies in the US Stock Market.
The S&P 500 index started in 1957, and it is consists of 500 large publicly traded American companies stocks the companies added in the S&P 500 index are from all sectors of the economy and are selected by a committee.
Dow Jones VS and S&P 500
These are the sum of the differences between Dow Jones 30 and S&P 500
- The Dow Jones Industrial Average and Standards and poor’s 500 both are indexes of the stock market in the United States.
- The Dow Jones Industrial Average is the index of 30 publicly owned Blue chip companies traded in the US Stock Market, while Standards and poor’s 500 is the index of 500 publicly traded companies in the US Stock Market.
- The full form of Dow Jones is Dow Jones Industrial weighted average, while the full form of S&P 500 is standards and poor’s 500.
- Dow Jones Industrial Average is started in 1896 while standards and poor’s 500 indexes are started in 1957.
- The current value of Dow Jones Industrial Average is 34,377.81 as of 14 October 2021 while the current value of S&P 500 is 4,363.80 as of 14 October 2021.
- The S&P 500 total market cap was approximately $31.61 trillion, which is the sum of the market caps for all the stocks in the index while As of September 2021 Dow has a market cap of $46.32 Billion.
- The Dow Jones is the oldest stock market index in the world.
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