What is a stock market index?

"A collection of stocks chosen based on specific criteria, reflecting a market segment's performance" "A financial instrument used to hedge against market volatility" "A type of mutual fund focused on specific sectors" "A government-issued bond used to raise capital"

How are stock market indices typically calculated?

"Using a simple average of all stock prices in the index" "Through a complex algorithm considering economic indicators" "By a weighted average, often based on price or market capitalization" "Based on the trading volume of the most active stocks"

What is the significance of the S&P 500 index?

"It tracks the performance of the top 500 companies globally" "It represents approximately 80% of the total US stock market value" "It focuses exclusively on technology companies listed on the Nasdaq exchange" "It serves as a benchmark for bond yields in the US market"

Which of these indices is price-weighted?

"S&P 500" "Dow Jones Industrial Average" "Nasdaq Composite" "Wilshire 5000"

What is a key characteristic of the Nasdaq Composite index?

"It primarily tracks the performance of blue-chip companies in traditional industries" "It includes all publicly listed companies in the US" "It is heavily weighted towards technology and growth-oriented companies" "It is exclusively composed of companies headquartered outside the US"

Which index is considered the broadest measure of the US stock market?

"S&P 500" "Dow Jones Industrial Average" "Nasdaq Composite" "Wilshire 5000"