You could be mistaken for thinking they are just that - meaningless letters. In fact, they're actually some of the stock market indices you're likely to be invested in!
Have you ever wondered what markets to follow and what they actually contain?
You probably know about the FTSE, Dow Jones Industrial Average and S&P 500. You might also know of the Nikkei 225 and Shanghai Shenzen CSI 300 Index that have come to the fore in recent years.
Ones you might not know about though are the KASE and the CSE - the Kazakhstan and Cyprus indices respectively. Nor the emerging market indices such as Brazil’s BOVESPA and India’s BSE SENSEX.
So which are the important indices and what are they composed of? Why not have a go at answering the question for each index too?
Dow Jones Industrial Average (DJIA)
Question 1: What company has been on the DJIA since inception?
Standard & Poor 500
Question 2: How many seconds elapse before the index is updated?
Question 3: In what year did the Nikkei start?
Question 4: What is currently the largest listed company on the FTSE?
That lists the four most important indices that people follow.
The next three are ones to follow in the future. You also need to read on for the answers to the questions above.
The enormous growth of the above three indices certainly shows the potential for each market. They have, however, also had massive drops and are still not close to the highs they have previously achieved.
Watching indices can keep you informed of what’s going on in the various markets around the world, as well as give you a good indication of the state of the global economy as a whole.
Article by Ranjit Virk