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Common Investing Questions

As a financial coaching firm, our goal is to be a source of information for all our clients. In our experience there are many common questions that people are afraid to ask. 

One example is, what is the difference between the Dow, S&P 500, and the NASDAQ?

We’ve all heard these mentioned on the news, especially now – but maybe you have never been sure what they are. Good news is, the answer is simple!  Each one of these is an index of stocks.  They’re handy tools because they enable investors to measure performance by comparing current price levels for different segments of the market with past ones.  What makes them different is what each index measures.

The Dow Jones Industrial Average tracks the performance of 30 of the most prominent companies listed on stock exchanges in America, such as Disney, Nike, Chase, and Apple.  Because it only tracks 30 companies, it isn’t a great indication of how the overall stock market is doing, but the media pays close attention to it because the companies are so well known.

The S&P 500 measures the 500 largest companies listed on the American stock exchange.  More than the Dow, the S&P 500 is considered a more reliable snapshot of the overall economy because it tracks so many more companies.

The NASDAQ Composite is weighted more towards technology companies.

There are other indexes used to track other companies and other indexes used in different countries, but these three are the most common in the US.

We invite questions, please give us a call today to schedule a free phone call or register for one of our upcoming financial education classes.

Phone: (503) 257-0057


Source: Bill Good Marketing, Accessed 3/22/23



DISCLOSURE: Investment advisory services are offered through Gretchen Stangier, Inc. DBA Stangier Wealth Management (“Stangier Wealth Management”), an investment advisor registered with the U.S. Securities and Exchange Commission. Stangier Wealth Management only offers investment advisory services where it is appropriately registered or exempt from registration and only after clients have entered into an investment advisory agreement confirming the terms of engagement and have been provided copies of the firm’s ADV Part 2A brochure and Part 3 documents.

DISCLAIMER: This website is for informational purposes only and does not constitute a complete description of our investment services or performance. This website is in no way a solicitation or offer to sell securities or investment advisory services except, where applicable, in states where we are registered or where an exemption or exclusion from such registration exists. Information throughout this site, whether stock quotes, charts, articles, or any other statement or statements regarding market or other financial information, is obtained from sources which we, and our suppliers believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Nothing on this website should be interpreted to state or imply that past results are an indication of future performance. THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, AS TO ACCURACY, COMPLETENESS, OR RESULTS OBTAINED FROM ANY INFORMATION POSTED ON THIS OR ANY ‘LINKED’ WEBSITE.

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