GSI: Uncovering the Big Companies Behind Dow Jones

 Anyone looking to trade or invest should be aware of the functioning of the world of global stock indexes. Catch the high-speed 5-minute video by Wei Sheng, the founder of TX Investment and Trading Business School, in which he takes viewers on a deep dive into the basics of global stock indexes and the companies powering those indexes. From the Dow Jones to the Nasdaq, from the German DAX to the Hang Seng Index, this video is your ultimate crash course on the essential building blocks of global markets.

global stock indexes


What is a Stock Index?


A stock index is a benchmark that represents the performance of a chosen set of stocks. It usually calculates based on prices of selected stocks that normally represent diverse industries and market sections. This index provides a picture of the general market or sectors to help guide investors in knowing how the market is moving, market mood, and general direction for stock prices.


The Key Players Behind Major Global Indexes


Here's Wei Sheng explaining how the "big companies" drive some of the world's most important stock indexes:


Dow Jones Industrial Average: The Dow Jones Industrial Average is one of the oldest and most widely recognized stock indexes. This particular stock index comprises 30 huge, publicly-owned companies in the United States. Some of them are the likes of Apple, Microsoft, and Boeing. It's also at times considered to act like a proxy for the health of the U.S. economy.

Nasdaq Composite: Probably the most recognizable index is the Nasdaq Composite, due to its high concentration of technology companies. Of course, the big giants like Amazon, Alphabet, and Facebook, which lead the charge and make Nasdaq an important barometer for the tech sector.


German DAX: The DAX is important for European market watchers because it comprises Germany's largest publicly traded companies. Among its key constituents are Volkswagen, Siemens, and Deutsche Bank, significant corporate bellwethers for the German economy in their field.

Hang Seng Index: This index is located in Hong Kong, and some of the largest companies listed include such giants as Ten cent, Alibaba, and China Construction Bank. This must be tracked to get a better understanding of China and Asian markets.

global stock index



Why Understanding Stock Indexes Matters


In fact, stock indexes have proven to be the most important tool for both novice and professional traders. The moment you track these indexes' performance, you get a better view of the trend in the market, investment ideas, and an opportunity for better risk management.


Want to learn about global stock indexes or fine-tune your trading strategies? We've got you covered. The video by Wei Sheng is here to elucidate for you why the world needs global stock indexes. Have a look and take one step closer to mastering the financial markets!


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