Stock indices
Stock indices
Notice: Everything, presented here, is the official information without my additions.
DJIA — USA
Nikkei — 225 — Japan
FTSE — 100 — UK
CAC — 40 — France
DAX — 30 — Germany
Hang Seng — HK (Hong Kong)
Dow Jones Index (DJI)
There are four Dow Jones Indices.
The Dow Jones Industrial Average (DJIA) — is the simple average that shows how 30 large, publicly-owned companies based in the United States have traded during a standard trading session in the stock market. It is the oldest and the most popular index of the stock market. Its structure is not invariable: its components can change depending on the positions of the biggest industrial corporations of the USA and the situation in the market. But in current situation such changes rarely happen. On the whole, its components have about 15 - 20% of the market share value of the shares traded on New York Stock Exchange. To calculate the DJIA, the sum of the prices of all 30 stocks is divided by a Divisor, the Dow Divisor. The divisor is adjusted in case of stock splits, spinoffs or similar structural changes, to ensure that such events do not in themselves alter the numerical value of the DJIA. Early on, the initial divisor was composed of the original number of component companies; which made the DJIA at first, a simple arithmetic average. The present divisor, after many adjustments, is less than one (meaning the index is larger than the sum of the prices of the components).The Dow Jones Transportation Average (DJTA) — is the running average of the stock prices of twenty transportation corporations (airlines, rail carriers and road companies).
The Dow Jones Utility Average (DJUA) — is the index that keeps track of the performance of 15 prominent utility companies.
The Dow Jones Composite Average (DJCA) — the average that is built on the basis of industrial, transportation and utility Dow Jones indices.
"Standard & Poor's" index (S&P)
This index is published by the independent company "Standard & Poor's". This index is calculated in two variants, on the basis of stocks of 500 corporations and on the basis of stocks of 100 corporations.S&P 500 (Standard and Poor's 500) is a market value weighted index of 500 corporations. Corporations are represented in the following proportion: 400 industrial corporations, 20 transportation corporations, 40 financial and 40 utilities companies. The index includes stocks of the companies, that are registered mostly on New York Stock Exchange. But also it includes stocks of some corporations that are registered on American Stock Exchange and some of those, that are in over-the-counter market. The index represents about 80% of market value of all stock issues, quoted on New York Stock Exchange. This index is more complicated comparing with Dow Jones Index, but it is perceived as more accurate because it represents more corporations than Dow Jones does, and stocks of every corporation are weighted to the value of all stocks owned by stockholders. S&P 500 futures and option contracts are sold on Chicago Mercantile Exchange.
S&P 100. This index is calculated in the same way as S&P 500, but it includes stocks of only those companies, that have registered option contracts on Chicago Board Options Exchange. Generally, these companies are industrial corporations.
New York Stock Exchange Index (NYSE Index)
NYSE Index measures all common stocks listed on the New York Stock Exchange. So, it represents an average stock price of all registered on NYSE corporations, weighted to market value of each corporation stock (with necessary updating if stock split, merger or takeover happens). Unlike Dow Jones Index that is expressed in points, NYSE Index is expressed in dollars. NYSE carries out operations with option contracts itself. Operations with futures contracts are carried out on New York Futures Exchange — a department of NYSE.Stock indices
American Stock Exchange Indices (AMEX)
American Stock Exchange announces two main indices, calculated in two absolutely different ways.AMEX Major Market Index is the American Stock Exchange price-weighted average of 20 Blue Chip industrial stocks of major U.S. Corporations. It was planned as some kind of substitute for Dow Jones Index. Although, AMEX calculates and announces this index, corporations included into AMEX Major Market Index are registered on NYSE. Notable fact is that 15 corporations are included into AMEX Major Market Index and Dow Jones Index at the same time. Chicago Board of Trade carries out operations with AMEX Major Market Index futures contracts.
AMEX Market Value Index is calculated in the different way. This index indicates a weighted market price of all emitted stocks of corporations included. In September 1973 this index was announced for the first time. The index consists of more than 800 stock issues, that represent capital issues of corporations from all major trade groups, registered on AMEX. Capital issues include not only general stock, but also American depositary receipt and subscription warrant. This index is unique from technical point of view, because in its calculation it is supposed that dividends, paid in cash to shareholders of AMEX companies, are reinvested and on this basis dividends are included in index calculations. Major Market Index option contracts are quoted on AMEX.
NASDAQ Index
Stock indices
There are several indices, carried out by National Association of Securities Dealers Automated Quotation that represent over-the-counter market on the whole as well as stock turnover of the corporations operating in separate economic sectors. NASDAQ Index is the main index, which includes stock of more than 3500 companies (except quoted on stock exchange). NASDAQ Index is a market value weighted index. In February 1971 it was calculated for the first time.Chicago Mercantile Exchange carries out NASDAQ index option and futures contracts operations.
Fall in stock index results in national currency fall.
