The higher the value of the stock the more it impacts the average.
What is price weighting?
100
Facebook, Starbucks, Twitter, Sirius, Yahoo, Google
Name 2 companies that list on the NASDAQ
200
Transportation and Utilities.
Which industries do not trade on the Dow Jones?
200
Large Cap corporations
Which type of American companies are traded on the S&P 500? (Hint: Large ______ )
200
Trading on the NASDAQ is done electronically.
How does trading take place on the NASDAQ?
200
The amount of shares available to the public, not held by owners, the government, or the officers of the company.
What is public float?
200
3M, Barclays, ADT, Ace Insurance, Amazon, American Express
Name two companies that list on the S&P 500
300
The Wall Street Journal.
Editors of this New York newspaper set the companies in the Dow Jones.
300
$5 Billion in market capitalization.
How much market capitalization (total of outstanding shares times price) must a company have to be in the S&P 500.
300
1,250,000 shares
How many shares must a company trade publicly in order to be listed in the NASDAQ?
300
A company that has a large amount of value in the stock market due to price and quantity of shares.
What is a large cap corporation?
400
The top companies in differing industries.
Which companies are chosen to be in the Dow?
400
Four consecutive quarters of profit.
How many consecutive quarters of profit must a company have to be considered in the S&P 500.
400
It must average at least $4.00.
What must the average bid price be on stocks to be considered in the NASDAQ?
400
A market where only dealers can buy and sell stocks among one another, there are no individuals allowed.
What is a dealers market?
500
Price Weighting
The Dow uses this type of weighting when calculating the Dow Jones Industrial Average.
500
There must be over 50% in public float to be in the S&P 500.
How much public float must a company have to be in the S&P 500?
500
The company must have at least 450 round lot holders to be on the NASDAQ.
How many round lot holders must a company have to be considered on the NASDAQ?
500
Market capitalization is the total value of the stock that a company has in the market. It is calculated by multiplying the total number of outstanding shares by the value of the stock at that given time.
What is market capitalization, and how is it calculated?