SIE (Securities Industry Essentials) Practice Exam

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Which of the following would be considered the broadest market index?

  1. S&P 500

  2. Dow Jones Industrial Average

  3. Nasdaq Composite

  4. Wilshire 5000

The correct answer is: Wilshire 5000

The Wilshire 5000 is considered the broadest market index because it includes all stocks actively traded in the United States, which is over 3,500 companies. The S&P 500 only includes 500 large-cap stocks, the Dow Jones Industrial Average includes 30 large-cap stocks, and the Nasdaq Composite includes over 3,000 companies but is mostly focused on technology and growth stocks. Therefore, the options A, B, and C are incorrect because they do not encompass as many companies as the Wilshire 5000.

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