Which of the following indexes gives the broadest picture of stock performance?

the OTC

the New York Stock Exchange

the S & P 500

the Dow

1 answer

The index that gives the broadest picture of stock performance among the options listed is the S & P 500.

The S & P 500 includes 500 of the largest publicly traded companies in the U.S. and is widely regarded as a strong representation of the overall stock market and U.S. economy. In comparison:

  • The Dow (Dow Jones Industrial Average) includes only 30 large companies and is more focused on industrial sectors.
  • The New York Stock Exchange is a stock exchange rather than an index, though it does have its own indexes (like the NYSE Composite).
  • The OTC (over-the-counter) refers to a decentralized market for trading securities and includes various stocks that are not listed on major exchanges, but it's not a single index.

Thus, the S & P 500 is the best choice for a broad measure of stock market performance.