Module 3 Assignment – Stock Index Research (SMP Preparation) UNDERSTANDING THE S

Module 3 Assignment – Stock Index Research (SMP Preparation)
UNDERSTANDING THE STOCK MARKET
SECTION 1 – INTRODUCTION
This assignment is designed to familiarize you with stock market in preparation for the Stock Market Project assignments in the following weeks. The following videos will provide you with a basic understanding of how the stock market works.
SECTION 2: INDIVIDUAL RESEARCH ASSIGNMENT
Begin by considering companies that were added and subtracted from the Dow Jones Industrial Average over the years by doing the following:
Go to the S&P and Dow Jones Indices webpageLinks to an external site.
Then click on:
Index Literacy (in a gray box on the right side of the page)
#7 Icons: the S&P 500 and the Dow to learn more about these companies
Take the quiz at the end to help you with completing this assignment (this quiz is not graded)
After reviewing the information on the webpage, create a Word document that is
at least 3 paragraphs in length
responds to the following:
What types of companies were added and deleted from the Dow?
Name the last of the original Dow stock companies to be dropped. Which company was added to replace it?
Why do you think the changes were made?
Do you think new changes will be made in the next five (5) years? Why?