Stock Exchanges and Market Indexes

Understand where stocks trade and how indexes like the S&P 500 or Nasdaq show the overall market trend.

Exchanges are where stocks trade. Indexes track how groups of stocks perform.

Stock exchanges

  • New York Stock Exchange (NYSE): Home to large, established companies.

  • NASDAQ: Mostly tech-focused, fully digital.

  • Other global markets: London Stock Exchange, Tokyo Stock Exchange, and more.

Market indexes

Indexes show how the market as a whole is doing:

  • S&P 500: Tracks 500 of the biggest U.S. companies.

  • Dow Jones Industrial Average: 30 large U.S. firms.

  • NASDAQ Composite: Focused on tech and growth stocks.

Bottom line

Exchanges are where trades happen. Indexes are how we measure the market’s mood. Together, they tell you where your investments stand.