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Multiple Choice
Which market index is normally associated with tracking the performance of 30 large, publicly-owned companies based in the United States?
A
Dow Jones Industrial Average
B
FTSE 100
C
S&P 500
D
NASDAQ Composite
Verified step by step guidance
1
Understand that the question is asking about a market index that tracks 30 large, publicly-owned companies in the United States.
Recall that the Dow Jones Industrial Average (DJIA) is a stock market index that specifically tracks 30 large, publicly-owned U.S. companies.
Recognize that other indices like the S&P 500 track a broader set of companies (500 companies), and the NASDAQ Composite includes thousands of stocks, mostly technology-focused.
Note that the FTSE 100 is a UK-based index tracking 100 large companies listed on the London Stock Exchange, so it is not relevant to U.S. companies.
Conclude that the index associated with tracking 30 large U.S. companies is the Dow Jones Industrial Average.