Why are Philidelphia stock exchange indexes so often used to monitor sectors?
One would think the DOW indes, Nasdaq, or others would be used more often. But for semi conductors, for example, SOX is the main index deferred to.
- MohammadLv 79 years agoFavorite Answer
1. The 'Philadelphia Semiconductor Index - SOX' - is a price-weighted index composed of 18 U.S. semiconductor companies primarily involved in the design, distribution, manufacture, and sale of semiconductors.
2. This is the reason that this index is closely watched for "chip" stocks. Options on the SOX are among the more actively traded options contacts.
.Source(s): . Yahoo Search. http://www.investopedia.com/terms/s/soxx.asp#axzz1...