Thursday, April 23, 2009

What is the difference between the Dow and the Nasdaq?

Both the Dow and the Nasdaq refer to an index, or an average of a bunch of numbers derived from the price movements of certain stocks. The DJIA (Dow Jones Industrial Average) tracks the performance of 30 different companies that are considered major players in their industries. The Nasdaq Composite, on the other hand, tracks approximately 4,000 stocks, all of which are traded on the Nasdaq exchange. The DJIA is composed mainly of companies found on the NYSE, with only a couple of Nasdaq-listed stocks. (Source:

OK - Sow now you want to know more about the stock market and trading? Check out the post- Beginner in the Stock Market for more!

If there is anything I would do differently in my life, it is that I would study business more. I'm trying to teach my daughter Chloe at an early age about investing and money so she's not afraid of it. -Donna Mills

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