When it comes to investing, investors are constantly looking for ways to gain insights into the stock market. With the list of the S&P 500, NASDAQ, and Dow all available, it can be intimidating for investors to gain a better understanding of what each one holds. Although the S&P 500, NASDAQ, and Dow can be overwhelming, there are two incredibly powerful ways to view the composition of these three markets – and both require minimal effort.
The first method is to use the “DJIA (Dow Jones Industrial Averge)” and the “DJTA (Dow Jones Transportation Average)” to get a quick overview of the thirty blue chip stocks that make up the Dow. The DJIA and DJTA compose the performance of the Dow, making them a useful reflection of how the Dow might be moving. The DJIA and DJTA should be used in combination with one another, as it gives investors a comprehensive look at the direction the Dow Jones is headed.
The second method is using an S&P 500 Index. The S&P 500 Index gives a comprehensive evaluation of all companies that are included in the S&P 500. It provides basic technical and fundamental data points that give investors a better understanding of the performance of each company that is traded.
These two methods provide a quick and powerful way to view stocks in the S&P 500, NASDAQ, and Dow – without having to pour through complex financial documents. With these tools, investors can make informed decisions about their stock purchases and stay up to date on the movements of the three major indices.