What stocks are included in the various indexes, and do the indexes move in tandem because of overlapping stocks?
Various indexes consist of the stocks of companies that are similar in either their line of business (e.g. the Dow Transport Index has firms involved in transportation), or in the size of their capitalization. Some of the popular indexes DO move in tandem, because they contain some of the same stocks.
Various indexes consist of the stocks of companies that are similar in either their line of business (e.g. the Dow Transport Index has firms involved in transportation), or in the size of their capitalization. Some of the popular indexes DO move in tandem, because they contain some of the same stocks. General Electric, for example, is in both the Dow Jones Industrial Average* and the Standard and Poor’s 500 Index.