The Dow Jones and S&P 500 by Ludmila Martinicka

The Dow Jones Industrial Average, also called informally The Dow or The Dow Jones, is one of several stock market indices in United States and belongs to oldest ones. A stock market index is a listing of stock and a statistic reflecting the composite value of its components. It provides the investors and businessmen with the characteristics of its component stocks. All of them have something in common. For example trading on the same stock market exchange, which belong to the same industry or they have similar market capitalizations. S&P 500 is an acronym of Standards and Poor's, index involving the stocks of 500 Large-Cap corporations, most of which are American. It provides independent credit ratings, indices, risk evaluation, investment research and data. The S&P 500 index is used as a baseline for a comparison in stock and mutual fund performance charts very often. New York came with news about Dow's and S&P's level on the Wall Street. Statistics says, they both fell to their lowest level. Some economical forecasters are worried about the situation. They fear that the losses from the global credit crisis may widen with its announcement of a $1.07 billion write-down, as Swiss Re, the world's biggest reinsurer, said. Sam Rahman, portfolio manager at Baring Asset Management Inc, has the same opinion and says, that it is quite expected. Thanks for the work of companies like Dow Jones and S&P, benchmarks can feel more confident and invest their money with more efficient estimate.

by Ludmila Martinicka for PocketNews (http://pocketnews.tv)

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