What Is One Difference Between the Dow Jones Industrial Average

question 149

Multiple Choice

What is one difference between the Dow Jones Industrial Average (the Dow) and the Standard and Poor's (S&P) 500 index?

• A) The Dow weighs the stock prices by the market value of the company,whereas the S&P 500 tracks only the price of the stock.
• B) The Dow provides a much broader representation of the stock market than the S&P 500 does.
• C) The S&P 500 provides more historical data than the Dow.
• D) The Dow tracks the price of the stock,whereas the S&P 500 weighs the stock prices by the market value of the company.
• E) The S&P 500 provides data on 500 companies,and the Dow provides data on only 300 companies.

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Definitions:

Tradeoff

A situation that involves losing one quality or aspect of something in return for gaining another quality or aspect.

Benefit

An advantage or profit gained from something.

Sensory Organs

Sensory organs are specialized parts of the body that receive and process sensory information, enabling perception of sight, sound, smell, taste, and touch.

High Frequency

Pertaining to or involving very short intervals of time or occurring at a rapid rate.