Economic Journal, a major business newspaper in Japan. Index includes the

225 largest and most actively traded stocks on the Tokyo Stock Exchange.

DAX: http://www.exchange.de

exchange. DAX is an abbreviation for Deutscher Aktien Index(German Stock

Tracks 30 of the largest companies on the Frankfurt, Germany, stock

TABLE 17.1 Some Stock Market Measures

Index).

The trend in the stock market is generally up over time, but with some large dips along the way. Figure 17.6

shows the path of the Standard & Poor’s 500 index (which is measured on the left-hand vertical axis) and the

Dow Jones Index (which is measured on the right-hand vertical axis). Broad stock market measures, like the

ones we list here, tend to move together. The S&P 500 Index is the weighted average market capitalization of

the firms selected to be in the index. The Dow Jones Industrial Average is the price weighted average of 30

industrial stocks tracked on the New York Stock Exchange.
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