Investment Fundamentals Essay Example | Topics and Well Written Essays - 1000 words

Investment Fundamentals - Essay ExampleThe index was developed by Charles Dow in 1884. Edward Jones also made major contributors towards the creation of the DJIA. On October 27, 2009 at 115 P.M. eastern the Dow Jones Industrial Average was at 9893.81 (Yahoo, 2009). The all time high for the index occurred prior to the start of the ongoing economic global recession. On October 1, 2007 the Dow Jones Industrial peaked at 14,087.55. Many analysts believed that the tune market was inflated at the time which is the primary reason why it went down so much afterwards. A identify of the 30 companies that compose the Dow Jones Industrial Index is illustrated in the table below.The Standard and Poors obscure index was developed in 1957. The index is composed of 385 industrial stocks, 15 transportation stocks, 56 financial stocks, and 44 utility stocks. The companies that compose the index are generally considered the most prestigious companies in the marketplace. imputable to the fact th at the S&P 500 includes such a broad base of leading listed and over-the-counter stocks the index is held in high regards by market analyst and institutionalized investors (Teweles, et. al. 1992). The great thing astir(predicate) this index is that is able to cover a greater scope of industries in comparison with the Dow Jones Industrial Average. The S&P 500 represents stocks across 86 industries. Just as in the DJIA the value of the index is ground on points not dollars. As of October 27, 2009 at 149 P.M eastern time the S&P 500 was valued at 1063.93 (Yahoo, 2009).The acronym NASDAQ stands for National Association of Securities Dealers Automated Quotations. The NASDAQ is a system for providing a engagement of competing brokers and dealers electronically with current price quotations to enable them to operate in effect as a stock market without a trading floor (Teweles, et al. 1992). The trading act that occurs at the NASDAQ is considered over the counter activity (OTC). Compani es that cannot afford to registered