Knowing Major Stock Indexes (Part II)
The Nasdaq-100 is a modified capitalization weighted index. Modified cap weighting involves adjustments to the capitalizations of the various components of the Nasdaq-100 index. The NDX contract at the CBOE is based on Nasdaq-100 as is the MNX.
Frank Russell Company is one of the leading global investment consultants. It is also involved in performance measurement, analysis and investment management. Russell 2000 is the well known benchmark for small capitalization sector. Several Russell Indexes have become benchmarks for specific areas of investment management.
Russell 3000 Index as the name implies includes 3000 issues. These 3000 companies represent 98% of the investable US equities. The index is adjusted for certain factors such as cross holdings and the number of pairs in hands.
Russell 3000 is further split into subsets like the Russell 2000 Index. It is the smallest 2000 companies in the Russell 3000 Index and represents about 8% of the value of Russell 3000. The other one is the Russell 1000 Index and covers the top 1000 companies. It is about 92% of the value of the entire 3,000 stock index.
From the business point of view, the Wall Street Journal is probably one of the most perfect business franchises. A franchise that is very hard to duplicate. The net worth of most of its readers is in seven figures. Dow Jones is the publisher of this journal.
Dow Jones Industrial Average (DJIA) comprising 12 smokestack companies made its debut in the year 1896. Over the year DJIA became an important business barometer and grew to encompass 30 large industrial companies.
The DJIA is still one of the worlds best known stock measures and consists of 30 largest and most liquid blue chip stocks in the US. The average is maintained by the editors of the Wall Street Journal.
The DJIA unlike the S&P 500, Nasdaq-100 or Russell 3000 Indexes is a price weighted average. Recently Microsoft and Intel were added to the DJIA. The highest price issues hold the most influence over the average.
A 1 percent move in a $90 Microsoft stock would have a greater impact than a 1 percent move in a $30 Intel stock. ETFs exit on many Dow Indexes like the DJIA, the Dow Jones Total Market Index, the Dow Jones Global Titan Index and various sector indexes.
Wilshire serves over 400 organizations in over 20 countries representing over $2 trillion in assets. Wilshire flagship index is the Wilshire 5000 Total Market Index.
Over the years, it has increased to 6500 issues representing the increase in the number of companies in the US. It represents the broadest index for the US equity markets.
The Morgan Stanley Capital International (MSCI) database contains nearly 25,000 securities covering 50 countries. It calculates nearly 3,000 indexes daily and services a client base of over 1,200 worldwide. One of the advantages of MCSI and its foreign indexes is consistency. - 23305
Frank Russell Company is one of the leading global investment consultants. It is also involved in performance measurement, analysis and investment management. Russell 2000 is the well known benchmark for small capitalization sector. Several Russell Indexes have become benchmarks for specific areas of investment management.
Russell 3000 Index as the name implies includes 3000 issues. These 3000 companies represent 98% of the investable US equities. The index is adjusted for certain factors such as cross holdings and the number of pairs in hands.
Russell 3000 is further split into subsets like the Russell 2000 Index. It is the smallest 2000 companies in the Russell 3000 Index and represents about 8% of the value of Russell 3000. The other one is the Russell 1000 Index and covers the top 1000 companies. It is about 92% of the value of the entire 3,000 stock index.
From the business point of view, the Wall Street Journal is probably one of the most perfect business franchises. A franchise that is very hard to duplicate. The net worth of most of its readers is in seven figures. Dow Jones is the publisher of this journal.
Dow Jones Industrial Average (DJIA) comprising 12 smokestack companies made its debut in the year 1896. Over the year DJIA became an important business barometer and grew to encompass 30 large industrial companies.
The DJIA is still one of the worlds best known stock measures and consists of 30 largest and most liquid blue chip stocks in the US. The average is maintained by the editors of the Wall Street Journal.
The DJIA unlike the S&P 500, Nasdaq-100 or Russell 3000 Indexes is a price weighted average. Recently Microsoft and Intel were added to the DJIA. The highest price issues hold the most influence over the average.
A 1 percent move in a $90 Microsoft stock would have a greater impact than a 1 percent move in a $30 Intel stock. ETFs exit on many Dow Indexes like the DJIA, the Dow Jones Total Market Index, the Dow Jones Global Titan Index and various sector indexes.
Wilshire serves over 400 organizations in over 20 countries representing over $2 trillion in assets. Wilshire flagship index is the Wilshire 5000 Total Market Index.
Over the years, it has increased to 6500 issues representing the increase in the number of companies in the US. It represents the broadest index for the US equity markets.
The Morgan Stanley Capital International (MSCI) database contains nearly 25,000 securities covering 50 countries. It calculates nearly 3,000 indexes daily and services a client base of over 1,200 worldwide. One of the advantages of MCSI and its foreign indexes is consistency. - 23305
About the Author:
Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and forex. Get good Forex Training. Learn Forex Trading!