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Investing in the Stock Market Explained: A Guide For Beginners

Erika Taught Me

CHAPTER

Understanding the Dominance of the US Stock Market and Major Indices

The chapter explores the dominance of the US stock market in the global economy, discussing the influence and profitability of US-based companies. It delves into the history and creation of major indices like the Dow Jones industrial average, the S&P 500, and the NASDAQ composite, highlighting their evolution and significance in portraying market activity. The chapter also explains the methodology of including stocks in these popular indices and the specific criteria they follow for representation.

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