In simple words, what is Nasdaq and Dow Jones?

In the simplest of words, the Nasdaq is an exchange - which is basically a market-place. A market place where buyers and sellers congregate to engage in transactions, and these transactions involve securities - for example, shares of a company. read more

NASDAQ in this example, is the candy shop where different companies are selling their parts known as shares/stocks. You just buy or sell those stocks with help of a broker. Dow Jones can be referred to as the manager of all the candy shops in US. Dow Jones tells us how much candies were traded among companies or individuals. read more

The S&P 500, NASDAQ, Dow Jones, Russell, and Wilshire are all examples of a “market index.” An index provides a summary of the overall market by tracking some of the top stocks within that market. read more

"The Dow" actually refers to the Dow Jones Industrial Average (DJIA), an important index that many people watch to get an indication of how well the overall stock market is performing. The Dow, or the DJIA, is not the same as Dow Jones and Company, the firm that publishes the Wall Street Journal. read more