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What are the contents of the stock index?

幫考網校2020-10-10 15:02:46
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A stock index is a measure of the performance of a group of stocks that are selected based on certain criteria. The contents of a stock index depend on the criteria used to select the stocks.

For example, the S&P 500 index is a stock market index that includes 500 large-cap stocks listed on the New York Stock Exchange or NASDAQ. The stocks are selected based on market capitalization, liquidity, and other factors. The Dow Jones Industrial Average (DJIA) includes 30 large-cap stocks that are considered to be leaders in their respective industries. The stocks are selected based on their reputation, stability, and other factors.

Other stock indexes may focus on specific sectors, such as technology or healthcare, or on specific regions, such as emerging markets or developed economies. The contents of these indexes would be determined by the criteria used to select the stocks.
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