Financial Markets and Institutions (2-downloads)

Security

Price

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Price

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Shares

Outstanding

1

8

13

20 million

2

22

25

50 million

3

35

30

120 million

4

50

55

75 million

W E B   E X E R C I S E S

The Stock Market

1. Visit 

http://www.forecasts.org/data/index.htm

.

Click “Stock Index Data” at the very top of the page,

and then click “U.S. Stock Indices–monthly.” Review

the indexes for the DJIA, the S&P 500, and the 

NASDAQ composite. Which index appears most

volatile? In which index would you have rather

invested in 1985 if the investment had been allowed

to compound until now?

2. There are a number of indexes that track the perfor-

mance of the stock market. It is interesting to review

how well they track along with each other. Go to

http://bloomberg.com

. Click the “Charts” tab at the

top of the screen. Alternatively, choose to display the

DJIA, S&P 500, NASDAQ, and the Russell 2000. Set

the time frame to five years. Click “Get Chart.”

a. Which index has been most volatile over the last

five years?

b. Which index has posted the greatest gains over the

last five years?

c. Now adjust the time frame to intraday. Which

index has performed the best today? Which has

been most volatile?

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The Mortgage Markets

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