Create a 6 page essay paper that discusses Week 2 discussion 2.
The data above is based on the NASDAQ composite index which represents the overall performance of the stock market in the period of ten years from year 2004 to the end of year 2013.
From the data, the changes in the composite index in the 12 months trading have been summarized yearly from the different securities traded. The difference between the opening trading composite index and the closing composite index gives the gain or loss during the trading financial year. From this the percentage amount of gain or loss is derived. Stock market index is very important in many ways as it is used to gauge the economic conditions of a give economy. A worse composite index could mean that the economy is going through recession while a pleasing composite index shows that the economy is doing well. This is because the index comprises of all listed companies and their returns in the securities exchange mainly shows the potential investments from both local and foreign investors in the country.
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