How the Major Stock Indexes Work

The major stock indexes are spoken about daily, but the average person knows little about them. The Dow Jones Industrial Average, the NASDAQ, and others are referenced all the time in business reports. Readers discover what the indices are, why we have them, and why they're so critical to the efficient operation of the global stock market. By understanding the mechanics of the stock market indices, readers will gain a better understanding of how the market works as a whole.