The Dow Jones, NASDAQ, S & P and NYSE are four distinct indexes in terms of analysing financial exchanges and operations. The Dow Jones also known as the Dow Jones industrial Average (DIJA) is considered as a prominent index parameter which signifies the overall performance of the stock exchange markets. The Dow Jones Industrial Average index parameter was being introduced by Charles Dow Jones in the year 1896 and since then the index parameter is known as the Dow Jones Industrial Average Index (DIJA). Many financial influencers around the world use the relative Dow Jones Industrial Average (DIJA) index parameter in terms of getting awareness about the overall behaviour of the stock markets. The Dow Jones Industrial Average (DIJA) index parameter was initially introduced as a result of joint venture between the CME Group Inc. and the S&P Global. The Dow Jones Industrial Average (DIJA) index reflects the fluctuations of the stock exchange markets. The Dow Jones index may be referred as one of the oldest parameter in terms of analysing financial exchange operations and is widely used across the world in terms of analysing exchange of financial operations.
The NASDAQ is also a prominent financial exchange index which stands for National Association of Securities Dealers Automated Quotations. The NASDAQ index parameter involve two major aspects, firstly, it is an electronic exchange parameter which allows the investors to trade their stocks on transparent and computerised systems without requiring any physical medium. Secondly, the NASDAQ is a well-known and widely practised composite index similar to the DIJA index which reflects the statistical measures of the stock exchange markets. Both Dow Jones Industrial Average and NASDAQ are the financial indexes which illustrates the overall fluctuations of the stock exchange markets. The Dow Jones index is widely practised around the world and is being used approximately by 30 different financial enterprises which are usually considered the leading influencers of the relative industry. On the other hand, the NASDAQ composite index is used in terms of tracking around 4,000 stocks around the world and an extensive range of stock markets across the world utilises the NASDAQ index in terms of carrying out financial operations.
The S & P index introduced by Standard & Poor in the year 1962 reflects the broader picture of the economy of United States as compared to three other financial indexes. The S & P index value is accumulated by considering the weightage of each financial enterprise as per its market capitalisation by the predefined divisor of S & P index which is then directly applied to get the final results. The simplest formula of S & P index is by dividing the total market capitalisation of an enterprise by the predefined S & P divisor. The S & P index appropriately reflects the variations and economic conditions of the United States’ equity markets. The S & P index is being followed by almost 500 financial enterprises around the world and almost 75 percent of the financial operations of the United States’ stock markets is being performed by following the S & P index. The S & P index just like the Dow Jones index is considered a reliable source of analysing overall performance of the stock markets across the world.
The New York Stock Exchange (NYSE) index as the name suggests is a financial index being practised within the city of New York in terms of analysing the performance of stock exchange operations. However, the New York Stock Exchange (NYSE) index may be referred as one of the most widely practised equity-based exchange index around the world which is extensively based on the overall market capitalisation of its relative financial securities. The key difference between Dow Jones Industrial Average (DIJA) index and NASDAQ composite index refers to the fact that DIJA index involve only 30 stocks of the most extensively traded firms within United States whereas the NASDAQ composite index covers around 3,300 stocks of its overall stock market. While, the key difference between NASDAQ and NYSE Indexes refers to the type of their market. The NASDAQ index follows the trading of stocks and shares through certified and authorised dealers which are considered an active influencers of stock market whereas the NYSE index involve the buying and selling of relative stocks and shares.