What is the difference between Djia and S&P 500?

If you would like to know more things about the things that you can invest in, you may want to check out S&P500 but DJIA. DJIA is very easy to calculate because you will just make use of different mathematical averages. The S&P500, on the other hand, can be calculated when you give weights to the different stocks that you use. You can actually fix them according to their market value.

One main difference that you will notice between the two is the number of companies that you can see in each. Even the type of companies that you will see is also different from each other. There are various companies that you will see for sure.

Djia and S&P 500 are two common stock market indices created to give an excellent report about the performance of most of the leading American companies in the stock market. Djia is just the short form of Dow Jones Industrial Average, a stock market index created by Charles Dow in 1896. Djia started by providing clear information about the trading graphs of some popular stocks when it started. S&P 500 is also a stock market index created in 1957.

P&S 500 is the second stock market index to be created by Standard and Poor's because its first creation, P&S 90, which was created in 1923, did not perform very well. Since its creation, P&S 500 has been used to determine and predict the prices of about 500 stocks that are doing well in the market. One of the major differences between the two is that Djia is an older creation, while P&S 500 could still be regarded as new. Djia gets its information from different kinds of reports ranging from politics, economics, etc.