Because the Dow Jones Index Average Is Based on the Movement

question 70

True/False

Because the Dow Jones Index Average is based on the movement of 500 large,well-established stocks,many investors believe it reflects price movements for large firms rather than for the general market.

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Definitions:

Share

A unit of ownership in a corporation or financial asset, giving holders a proportion of the company's profits and voting rights.

Bank Account

A financial account maintained by a bank for a customer, allowing for the deposit and withdrawal of funds and earning of interest.

Annual Withdrawals

The amount of money taken from an account or investment over the course of a year.

Interest

The expense associated with taking out a loan, usually represented as a yearly percent of the total loan value.