What is the Difference Between S&P 500 and NASDAQ?
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Friday letters are usually dedicated to taking questions from our community. Do you have a question for us? Please feel free to send an e-mail to info@themoneyafrica.com or a DM to any of our social media channels.
Question
How can I adjust my savings (emergency fund) to balance out inflation without investing it?
Answer
Inflation is the general increase in prices of goods and services. Inflation can be measured on a monthly or annual basis. Nigeria's inflation rate for September is 16.6%. This means that between September last year and now, prices have gone up by 16.6%.
In order to beat this inflation rate you would need an interest rate that is higher than 16%. Interest on a savings account is around 1.1% per annum.Â
The poor returns mean you will need to go beyond savings to flexible investments that will earn you better returns.
QuestionÂ
What’s the difference between ERC20 USDT token and TRC20 USDT token?
AnswerÂ
The USDT issued on TRC20 and ERC20 are both similar.Â
It’s just that TRC20-USDT refers to USDT issued on the TRON network, ERC20-USDT refers to USDT issued by Tether on the Ethereum network.
The fees to transfer this USDT can often be cheaper on the Tron network using TRC20.
QuestionÂ
What is the difference between the S&P 500 and NASDAQ?
Answer
The S&P 500 (Standard and Poor 500) index and the NASDAQ composite index are both used to measure how well stocks in the US stock market are doing.
There are three major indexes used to measure the US stock market. They are: Dow Jones, S&P 500 and the NASDAQ composite index.Â
They are similar because they both measure the stock market to see how the stock market is doing. However, the way they go about this measurement is different, which is why they both have different opinions on how the stock market is doing.
The S&P 500 makes its calculation by using the market float of shares. This means that it gives companies with the greatest value of shares available to be traded a high spot in their calculation. The S&P 500 also calculates a broader market.
The NASDAQ composite index, however, calculates based on market value, which means that the companies with the greatest total market value have a high spot in their calculation. The NASDAQ composite index calculates only stocks in the NASDAQ market.Â
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