a. Dow Jones Industrial Average
b. S&P 500
c. Nasdaq Composite
d. FT-100
In the context of this question, the answer is B, since it covers the 500 largest public companies regardless of the exchange they are listed on. Dow Jones only encompasses 30 companies. The NASDAQ only encompasses companies listed on the NASDAQ exchange and is is heavily tech oriented. The FT-100 covers the top 100 companies listed on the London Stock Exchange.
You can impress your professor though if you tell him/her the real answer, at least where US companies are concerned:
This is from Wikipedia:
The Wilshire 5000 Total Market Index, or more simply the Wilshire 5000, is a market-capitalization-weighted index of the market value of all stocks actively traded in the United States. Currently, the index contains over 6,307 components. The index is intended to measure the performance of most publicly traded companies headquartered in the United States, with readily available price data, (Bulletin Board/penny stocks and stocks of extremely small companies are excluded). Hence, the index includes a majority of the common stocks, REITs, and limited partnership shares, traded primarily through NASDAQ OMX or NYSE Euronext or the American Stock Exchange.
In the context of this question, the answer is B, since it covers the 500 largest public companies regardless of the exchange they are listed on. Dow Jones only encompasses 30 companies. The NASDAQ only encompasses companies listed on the NASDAQ exchange and is is heavily tech oriented. The FT-100 covers the top 100 companies listed on the London Stock Exchange.
You can impress your professor though if you tell him/her the real answer, at least where US companies are concerned:
This is from Wikipedia:
The Wilshire 5000 Total Market Index, or more simply the Wilshire 5000, is a market-capitalization-weighted index of the market value of all stocks actively traded in the United States. Currently, the index contains over 6,307 components. The index is intended to measure the performance of most publicly traded companies headquartered in the United States, with readily available price data, (Bulletin Board/penny stocks and stocks of extremely small companies are excluded). Hence, the index includes a majority of the common stocks, REITs, and limited partnership shares, traded primarily through NASDAQ OMX or NYSE Euronext or the American Stock Exchange.
References :
35 years of accounting experience