A student makes the following observation: The Dow Jones Industrial Average currently has a value of 17,500,

Question:

A student makes the following observation: “The Dow Jones Industrial Average currently has a value of 17,500, while the S&P 500 has a value of 2,000. Therefore, the prices of the stocks in the DJIA are more than eight times as high as the prices of the stocks in the S&P 500.” Briefly explain whether you agree with the student’s reasoning.

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...