Home / Uncategorized / Top 6 Stock Market Price Indexes

Top 6 Stock Market Price Indexes

Common stock is the ownership instrument of American corporations. Holders of common stock are risk taking investors who share in the profits of dividends are paid. Below are the top 6 stock market price indexes:

New York Stock Exchange Composite Index

This index covers prices of the over 2,000 companies listed on the New York Stock Exchange. The index reflects the change in the price of an average share of stock of companies since December of 1965, when the average market value was approximately $50. Component indexes of the composite are provided for companies in the industrial, transportation, utility, and finance groups.

Nasdaq Composite Index

This index covers the prices of the over 4,000 companies traded on the Nasdaq market. The index reflects the change in the price of an average share of stock of the companies since February of 1971. Component indxes of the composite are provided for companies classified as industrial, banking, insurance, other finance, transportation, and utilities.

top-6-stock-market-price-indexes-1

AMEX Market Value Index

This index covers the prices of the approximately 850 companies and 950 stock issues listed on the AMEX. The index reflects the change in the price of an average share of stock of the companies since July of 1983 when the index was set at 50. Adjustments are made for cash dividends to include them in the value of the stock as if they are reinvested in the index. This offsets the ex-dividend deduction from the quoted price on the day the divided is declared. Component indexes of the composite are provided for companies classified as high technology, capital goods, consumer goods, services, retail, financial, natural resources, and housing, construction, and land development.

Dow Jones Industrial Average

This index covers prices of thirty companies listed on the New York Stock exchange. They are widely held large blue chip companies that are mainly in manufacturing industries, but also include mining, communications, finance, and retail firms. They account for approximately 25 percent of the market value of all companies on the New York Stock Exchange and 20 percent of the market value of the over 5,000 companies traded on all U.S. Stock exchanges in the 1990’s. The average reflects the price of an average share of stock based on the capitalized structure of companies when they are first incorporated in the index. Other Dow Jones indexes are provided for transportation and utility companies and for the composite index of 65 industrial, transportation, and utility companies.

Standard & Poor’s 500 Composite Price Index

This index covers prices of 500 companies on the New York Stock Exchange, Nasdaq, and AMEX. Of the total index, companies on the New York Stock Exchange account for 92 percent of the market value, the Nasdaq for 7 percent, and the AMEX for 1 percent. They include large and medium size companies, and account for 67 percent of the market value of over 5, 000 publically traded stocks in 1991. The index reflects the price of an average share of common stock based on the capitalized structure of companies during 1941, when the average market value was $10. Component indexes of the 500 composite are provided for companies in the industrial, transportation, utilities, and financial groups. Supplementary indexes based on different categories of products and stock are available for companies in the consumer and capital goods industries, high grade common stocks, and low priced common stocks.

Wilshire 5000 equity Index

This index covers prices of over 6,000 companies including all New York Stock Exchange, and AMEX companies. The 5,000 in the title has become outdated, as the index has expanded to over 6,000 companies. The index reflects the market value based on capitalized structure of companies as of December of 1980. It is the most comprehensive measure of common stock values traded in major markets. Of the total index, approximately 85 percent of the market value, the Nasdaq for 13 percent, and the AMEX for 2 percent.

Check Also

Market turbulence serves as a reminder for pedaling lightly

Recent tremor in stock and bond markets is amazing – and can let investors feel …

Leave a Reply

Your email address will not be published. Required fields are marked *