Dow Jones Industrial Average (DJIA) and S&P 500

Market Benchmarks
Student’s Name
Institutional Affiliation
Course Number and Name
Instructor’s Name
Due Date
Market Benchmarks
Dow Jones Industrial Average (DJIA) and S&P 500 are both used for tracking the American stock market indexes. One way the two are used as a barometer for a market portfolio is through the capital. DJIA tracks America's largest companies. Today, the barometer follows 30 of the country's large corporations, which were added in 1928 (Zhang et al., 2011). Most of the stocks that DJIA tracks are high capital, large household names such as Johnson & Johnson, Microsoft, and Coca-Cola. When tracking the income, DJIA determines that the average stock price should be considered the market benchmark (Martin, 2014). The criteria to become part of the Dow is not clear, but firms incorporated are large industry leaders.
In contrast, S&P 500 follows 500 of America’s largest publicly traded stocks. However, unlike DJIA, S&P 500 tracks company stocks from all sectors of the country&rs...