The DOW and The NASQAQ Dow Jones Industrial Average is an index of 30 stocks that are mostly industrial stocks, this weighted-average helps indicate how the overall US economy is doing, and is comprised of some of the bigger companies within industries (Investopedia)(Investor Words)(DJIA). The NASDAQ is another popular stock index that formulates a picture of the overall economy; this index is encompassed of thousands of stocks from multiple industries. It is another average that can be used to see how the larger businesses are doing (Investopedia)(Wikipedia)(Business Dictionary). Both of these indexes are weighted-averages that are looked upon by a vast majority of the US population. They try express a picture of the US economy. The biggest difference between the two is what they show; the DOW tends to choose more industrial companies and has a lower amount of stocks, while the NASDAQ has over 3000 stocks all over the spectrum such as; technology, biotech, industrial and many other stocks. The Dow Jones Industrial Average is very significant in that it is used as …show more content…
The NASDAQ is composed of multiple stocks, to many to list out, but it mainly consists of Internet or Technology companies plus a combination of financial, biotech, industrial and consumer stocks (Investopedia). Both stock indexes include a wide variety of types of stocks, such as industrial and technological stocks. The main difference between the two indexes is that NASDAQ has a larger variety of stocks, since it has 3000 plus stocks it has a wider selection of