The dow jones industrial average is one of the most widely known market indicees in the world. It's when a group of stocks, the their price changes on any given day, are collaborated together to give investors an idea of what happened with that market. The s and p 500 was created in the 19 fifties because computers could start to do the math. A new stock exchange wanted to create its own stock market index, and they created the nasdak composite. And like any capitalist society, another company called standard and pores looked at what dow jones was doing and said, hey, want to make our own indices. So they went on to create what would become the
#369: To answer these questions, we need a deep, tree-trunk understanding – a core, fundamental understanding – of how the stock market operates.
What, exactly, IS a stock – and how are stocks valued? What’s the difference between the Dow Jones, the S&P 500, and the Nasdaq? Why is the market a voting machine in the short-term, but a weighing machine in the long-term?
Brian Feroldi, the author of “Why Does the Stock Market Go Up?,” joins us for a Stocks 101 explainer episode.
If you’d like a deeper understanding of the world of stocks, you’ll enjoy this explainer episode.
And if you have a friend/spouse/coworker who’s said, “I need to learn more about investing,” share this episode with them.
Enjoy!
For more information, visit the show notes at https://affordanything.com/episode369
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