The most popular stock indices are the top five global markets.

First, there’s the Standard & Poor’s 500 (referred to in shorthand as the S&P 500). This is an American stock market index based on the market capitalization of the largest 500 companies listed on the New York Stock Exchange (NYSE) or the NASDAQ. The S&P 500 is very diverse and contains more constituents than the other US indices. representing about 80% of the total value of American stock markets.

Then there’s the Dow Jones Industrial Average, or the Dow, which is another stock market index measuring the performance of America’s 30 largest companies.

Another popular index is the Financial Times Stock Exchange Index 100 (FTSE 100). This index represents the top 100 companies trading on the UK market.

The NASDAQ 100 is very similar to the FTSE 100, acting as a barometer of the top 100 US companies. It stands for the National Association of Securities Dealers Automated Quotations System and is the world’s second-largest stock exchange based on market capitalization. Typically, the NASDAQ carries large technology companies including Cisco, Microsoft, Apple, and Dell.

Finally, there’s also the DAX, or the Deutscher Aktienindex. This German stock market index comprises 30 of the major German companies trading on the Frankfurt Stock Exchange. Together, these five stock indices are the most popularly traded in the West.