1. Index vs. Exchange
Notes #3

2. What do these cartoons mean?

3. What is an index? A group of equities (stocks) used to measure
the strength of the economy
A sample or piece of the entire market

4. Three MAIN Indexes:
Nasdaq: Composite Index measures all NASDAQ domestic and international based common type stocks listed on The Nasdaq Stock Market (4,000+, mostly tech based companies).
S & P 500: An index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500 is designed to be a leading indicator of U.S. equities. 
DJIA (Dow Jones Industrial Average): Created in 1896 to include 12 (mostly industrial) companies -- now includes 30 top “blue chips”, only GE remains as one of the original 12!
*Goldman Sachs, Nike and Visa were added in September 2013, replacing Alcoa, Bank of America and Hewlett-Packard

5. Exchanges NASDAQ: largest trading exchange, electronic, began in 1971
NYSE: oldest exchange, est. 1792, most renowned, known as “The Big Board”
AMEX: an integrated exchange (electronic & floor based), began in 1849 known as “The Curb”, now been moved to wall street acquired by NYSE Euronext