A.

Give a description of each index, what it measures, how the value of the Index is determined
(priced) and what financial market (country) it is represents.
For each of the listed indices in Part A, list 5 stocks in each index, list the name and stock
symbol. (Use Market Capitalization to determine size)
1. Dow Jones Average-30 Industrial was invented by Charles Dow in 1896. It is a price-
weighted average of 30 significant stocks traded on the New York Stock
Exchange (NYSE) and the NASDAQ. The DJIA is one of the oldest, single most-
watched indices in the world.
The Dow is a price-weighted index. This means stocks with higher share prices are given a
greater weight in the index. At the Dow's inception, Charles Dow calculated the average by
adding the prices of the 12 Dow component stocks and dividing by 12. There have been some
changes over time but the basics of how it is priced stays the same.

Chevron Corporation

Coca-Cola Company

IBM Corporation

Johnson & Johnson

McDonald’s Corporation

2. Dow Jones Average-20 Transportation is a price-weighted average of 20 transportation

stocks traded in the United States. It is said to be the oldest US stock index. The index
initially consisted of nine railroad companies - a testament to their dominance of the U.S.
transportation sector in the late 19th and early 20th centuries - and two non-railroad
companies. In addition to railroads, the index now includes airlines, trucking, marine
transportation, delivery services and logistics companies.
The index is a running average of the stock prices of twenty transportation corporations, with
each stock's price weighted to adjust for stock splits and other factors. As a result, it can change
at any time the markets are open. The figure mentioned in news reports is usually the figure
derived from the prices at the close of the market for the day.
 Alaska Air Group, Inc.

American Airlines Group, Inc.

Ryder System, Inc.

Union Pacific Corporation

Kansas City Southern

3. Dow Jones Average-15 Utilities

The Dow Jones Utility Average is a price-weighted average of 15 utility stocks traded in the
United States. The DJUA was started back in 1929.

AES Corp.,

American Electric Power Co., Inc.

American Water Works Company, Inc.

CenterPoint Energy, Inc.

Consolidated Edison, Inc.

4. Standard &Poor’s (S&P) 500 Index

The Standard & Poor's 500 Index (S&P 500) is an index of 500 stocks seen as a leading
indicator of U.S. equities and a reflection of the performance of the large cap universe, made up
of companies selected by economists. The S&P 500 is a market value weighted index and one of
the common benchmarks for the U.S. stock market; other S&P indexes include small
cap companies with market capitalization between $300 million and $2 billion, and an index
of mid cap companies. Investment products based on the S&P 500 include index funds and
exchange-traded funds are available to investors.
 The index reached a relative intraday high—which was not exceeded for over seven years—
of 1,552.87, on March 24, 2000, during the dot-com bubble. The index then declined by
approximately 50%, to 768.63, on October 10, 2002, during the stock market downturn of 2002.
On May 30, 2007, the S&P 500 closed at 1,530.23, to set its first all-time closing high in more
than seven years. Although the index achieved a new all-time intraday high on October 11, 2007,
at 1,576.09, following a record close of 1,565.15 on October 9, the index finished 2007 at
1,468.36 points—just below its 1999 annual close. Less than a month later, it dropped to 1,400,
and would not see similar levels again for five years.

-3M Company

-Aetna Inc.

-Amazon.com Inc.

-Apple Inc.

-AT&T Inc

5. NASDAQ Composite
The Nasdaq Composite Index is the market capitalization-weighted index of
approximately 3,000 common equities listed on the Nasdaq stock exchange. The types of
securities in the index include American depositary receipts, common stocks, real estate
investment trusts (REITs) and tracking stocks, as well as limited partnership interests.
The index includes all Nasdaq-listed stocks that are not derivatives, preferred shares,
funds, exchange-traded funds (ETFs) or debenture securities.
Unlike other market indexes, the Nasdaq Composite is not limited to companies
that have U.S. headquarters. It is very common to hear the closing price of the Nasdaq
Composite Index reported in the financial press or as part of the evening news because it
is such a broad-based market index.

Property Insurance Holdings, Inc.

Abeona Therapeutics, Inc.

Access National Corporation

 Affiliated Managers Group. Inc -

AgroFresh Solutions, Inc. -

6. NASDAQ 100
An index composed of the 100 largest, most actively traded U.S companies listed
on the Nasdaq stock exchange. This index includes companies from a broad range of
industries with the exception of those that operate in the financial industry, such as banks
and investment companies.
It is a modified capitalization-weighted index. The stocks' weights in the index are
based on their market capitalizations, with certain rules capping the influence of the
largest components. It is based on exchange, and it is not an index of U.S.-based
companies. It does not have any financial companies, since these were put in a separate
index. Both of those criteria differentiate it from the Dow Jones Industrial Average, and
the exclusion of financial companies distinguishes it from the S&P 500.

eBay, Inc.

Broadcom Limited

PayPal Holding, Inc.

Yahoo, Inc

Netflix
B.
Give a description of each index, what it measures, and in what country it is located.

1. NIKKEI 225 Index

2. FTSE 100 Index
3. HANG SENG Index

ANSWERS:

1. NIKKEI 225 Index is more commonly called as Nikkei or Nickei Stock Average. It is
believed to be the oldest in Asia and was calculated since September 1950. Aside from
being most respected, Nikkei is also the leading index of Japanese stocks. Tokyo Stock
Exchange uses it as a stock market index.

2. FTSE 100 Index, located in London, is the widely used and most popular stock market
index in the world. With approximately 80% of the market capitalization of the London
Stock Exchange represents or measures by this index. It is believed to be the main
indicator of prosperity among the United Kingdom companies and its economy.

3. HANG SENG Index, located in Hong Kong, is a market capitalization index of 40 of the
largest companies that trade on the Hong Kong exchange (Investopedia). It intends to
capture the leadership of Hong Kong exchange and covers approximately 65% of its
total market capitalization.