- 22 August 2023
- Posted by: Federica Montella
- Category: Investing
Table of Contents
An index is like a basket of stocks that represent a specific group of companies.
It gives us a quick snapshot of how the overall market or a particular sector is performing.
In the US, there are three main stock indices: the Dow Jones, the S&P 500, and the Nasdaq Composite.
The S&P 500 includes 500 of the largest publicly traded companies in the US.
It’s considered a broader representation of the market’s performance and is widely used by investors and professionals.
The Nasdaq Composite includes more than 3,500 companies, mainly from the technology sector.
It shows us how tech-heavy companies are performing in the market.
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