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Web Marketing Terms

August 9, 2009 by  
Filed under Web Marketing

web marketing terms
What is the function of the stock market? Particularly what is the S&P 500, Dow Jones and NASDAQ?

What is the primary function of the stock market? I am having difficulty understanding so laymans terms please! I am writing a paper and I don’t understand the concepts so it is making it very difficult to put into my own words, but I need to know the differences before I progress. Also, does anyone know if there is a web site that will help me understand how to read the S & P 500 that is in Yahoo Finance? Thanks in advance!

S&P 500, Dow Jones, and NASDAQ – when you are talking about them together you are talking about them as indices. the NASDAQ is an index of all the companies on the NASDAQ – when MSFT goes up, the NASDAQ index will go up… the S&P 500 is a broad based index of 500 of the top companies in the U.S. The Dow Jones is an index of 30 companies which are supposed to best represent the US economy. The NASDAQ – see above – tech oriented.

the primary function of the stock market is to distribute capital. Companies offer shares through an initial public offering or secondary offerings – capitalism allocates more capital to good companies through the stock market than to bad companies (is the thought). When Microsoft stock goes up some day, it is not getting any money – but, it goes up because people have more positive feelings towards it, so when it does decide to offer more shares to the public, it can do so at a higher price.

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