In Addition to the Number of Stocks Represented,a Difference Between

question 85

Multiple Choice

In addition to the number of stocks represented,a difference between the S&P 500 and the Dow is that the S&P 500:

• A) dates back to the nineteenth century while the Dow is a recent innovation.
• B) is value-weighted while the Dow is an equally-weighted index.
• C) includes foreign stocks while the Dow is domestic.
• D) index includes dividends in its return while the Dow does not.

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Definitions:

FICA-OASDI

The part of the U.S. payroll tax that funds the Social Security program, officially called Old Age, Survivors, and Disability Insurance.

FICA-Medicare

Part of the U.S. payroll tax that funds Medicare, providing health insurance to individuals aged 65 and over, and to certain younger people with disabilities.

Federal Income Tax

An annual financial obligation placed on individuals, companies, trusts, and various legal entities by the central government.

State Income Tax

A tax imposed by a state on the income earned by individuals, corporations, or other legal entities within that state.