What's the difference between NASDAQ and Dow?

As a big economic country in the world, the United States started its financial market earlier and its investment mechanism is more perfect. Like China, the stock market of the United States naturally has its "big index". Among them, the NASDAQ index and the Dow Jones index are two of their three major indexes. So, what is the difference between the NASDAQ index and the Dow Jones index? Next, let's have a look.

The difference between NASDAQ and dow
1. The range of sample stocks is different
NASDAQ index: the constituent stocks of NASDAQ index pay more attention to technology, among which stocks are all new technology industries, including software and computer, telecommunications, biotechnology, retail and wholesale trade, such as apple, Google, etc.
Dow Jones index: the component stocks of Dow Jones index are traditional industrial stocks in the United States, which are often replaced and changed, such as Nike, Disney, etc.
2. The index is calculated in different ways
The Dow Jones index uses the simple average method: stock index = the sum of n sample stock indexes / N; the Dow Jones index uses the comprehensive average method.
3. The time of establishment is different
The Dow Jones index has a long history, compiled by Charles Dow, the founder of Dow Jones company; the NASDAQ index is later than the Dow Jones index.
4. The content and function of expression are different
Although both Shenzhen Composite Index and Shanghai composite index are fully representative, Dow Jones represents the traditional economic index of the United States with relatively stable trend, while NASDAQ represents the emerging industrial economy of the United States with relatively strong volatility and stimulation.

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