The listed companies in the Dow, Nasdaq, and S&P have the following differences:
1. The Dow's constituent companies cover a range of industries, including technology, health care, financials, consumer services, industrials, and oil and gas. It consists of 30 representative stocks of large industrial and commercial companies and becomes larger as the economy develops, roughly reflecting the price level of the entire U.S. industrial and commercial stocks.
2. Nasdaq's listed companies cover all new technology industries, including software and computers, telecommunications, biotechnology, retail and wholesale trade. It consists of hundreds of the fastest-growing advanced technology, telecommunications and biotechnology companies in the United States, including Microsoft, Intel, America Online and Yahoo, which are household names in high-tech companies, and has thus become synonymous with the United States "new economy".
3, the S&P 500 index constituent companies in a wide range of industries, including information technology, finance, health care, consumer non-essentials, energy, raw materials, utilities, real estate and communications services. All of the companies covered by the S&P 500 are listed companies traded on major U.S. exchanges, such as the New York Stock Exchange and Nasdaq. The S&P 500 includes more companies than the Dow Jones, so the risk is more diversified and reflects a wider range of market changes.
Expanded Information:
The Dow Jones Industrial Average is a price-based average of the shares of 30 U.S. share price averages of 30 blue-chip companies in the United States. The Dow is one of the oldest and best known stock indexes in the world, and by its nature is a benchmark index of the world's largest stock markets. The index has become an important "barometer" of global investor confidence.
The Nasdaq Composite Index covers more than 3,000 stocks traded on the Nasdaq market under the symbol "IXIC". The Nasdaq Composite is a market-capitalization-weighted index with a large weighting in technology stocks. The types of securities in the index include American Depository Receipts (ADRs), common stocks, real estate investment trusts (REITs) and tracking stocks, in addition to limited partnership interests.
Created in 1957, the S&P 500 was the first broad U.S. stock market index to use market-capitalization weighting. The constituents of this globally recognized index cover more than 500 leading companies in major sectors of the U.S. economy.
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