Which market index do you use?

Question

Dow? Ny Stock exchange or ?

Answer 1

The S&P 500 is probably used most widely as an indicator of the market.  Its used to calculate beta and as a benchmark for many diversified mutual funds.  All stocks in the Dow are in the S&P.  But its calculated differently than the Dow.

Answer 2

An index you follow.  The NY Stock Exchange (NYSE) is just where it is traded.

The Dow follows 30 of the biggest American Companies.  The S&P 500 follows 500 of the next bigges companies.

These INDEXES shadow the movements of the companies that belong to them.

Hope this helps.