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Chapter 28 Part III. Continuation - Stock Market. Page 5

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 27, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

    Aug 28, 2009
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    2. S&P 500. This is a broader index, that calculated by Standard & Poor’s rating agency. As you probably understand, it includes the value of 500 stocks. This is the leading large-cap benchmark for the US Stock market and the main barometer for institutional and professional investors. Since this index includes among the others the same 30 stocks that are Dow has, these two indexes are highly correlated. This index is capitalization-weighted and float-adjusted index. In other words, the weight of each stock in index depends from the total value of company. “Float-adjusted” refers to shares. When calculating a capitalization-weighted, float-adjusted index, only those shares available to investors are counted. This will be less than a company’s total outstanding shares. Shares held by government agencies, closely held groups and others are not counted.

    3. NASDAQ is National Association of Securities Dealers Automated Quotations. This is a largest electronic system of stock trading that includes approximately 4000 companies of non-financial sector – mostly technology and software companies. In fact there are two major indexes – NASDAQ-100. I think you guess that it includes 100 largest companies that are listed on NASDAQ and NASDAQ Composite Index. This is extremely wide index that includes about 5000 companies as from US as from other countries, since NASDAQ acquire some other stock exchanges in Europe.

    Major World Indexes Continued

    - DAX. This German Stock Index, that is very similar to the Dow. It also includes 30 companies that are in listing of Frankfurt stock exchange. Since Germany is a most powerful economy in the EU – DAX is an important barometer of stock market;

    - FTSE-100. (read as “footsie”). This is “Financial Times Stock Exchange Index”. This index, as you understand is calculated by FT Agency and treated among most important world and European stock indexes. It includes 100 largest companies’ stocks that are listed on London Stock Exchange (LSE). There is also exists FTSE-250 index.

    - Nikkei-225. I think you may explain this index right by its name. Right, this is most famous Japan index that includes 225 most powerful and largest Japanese companies from listing of Tokyo stock exchange. All Japanese car producers companies are in this index – Mitsubishi, Toyota, Honda, Suzuki and others, as well as electronic Giants as Sony, Fuji and others. Also there are some other Nikkei indexes – Nikkei-500, Nikkei-300. These indexes include a bit more companies in calculation;
    #1 Sive Morten, Dec 27, 2013
    Lasted edited by : Oct 8, 2016
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