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Why might the Standard & Poor's 500 Index be a better measure of stock market performance than the Dow Jones Industrial Average Why is the DJIA more popular than the S&P 500?

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S&P 500 uses a market cap methodology, giving a higher weighting to larger companies, whereas the DJIA uses a price weighting methodology which gives more expensive stocks a higher weighting. Many investors believe a market cap methodology is a more accurate indication of true market conditions.
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