The NASDAQ-100 consists of 100 of the largest non-financial companies listed on the NASDAQ. This is a modified market value-weighted index. Each company on the NASDAQ- 100 has a weight assigned to it based on its market capitalization. For example a company with a weight of 1% would have to rise by 5 times as much as a company with a weight of 5% to make the same change in the index. As of June 22, 2010 five of the companies with the largest weight in the Index were Apple with 20.1%, Microsoft at 4.5%, Google at 4.2%, Qualcomm with 4.1% and Oracle with 2.8%.
The Dow Jones Industrial Average is a stock index consisting of 30 of the companies with the largest market capitalization. It is a scaled price weighted average. The five largest companies on the DJIA are IBM with 9.55%, 3M with 6.13%, Chevron with 5.77%, Caterpillar with 5.53% and McDonald’s with 5.23%.