Which index is composed of 225 top-rated Japanese companies listed in the First Section of the Tokyo Stock Exchange?

• A. S&P 500
• B. Nikkei 225
• C. DJIA
• D. FTSE 100

Answer: (B)

This question tests your knowledge of a key Japanese market index and what it represents. The Nikkei 225 is the benchmark index that tracks 225 major Japanese companies listed on the Tokyo Stock Exchange’s First Section. It’s often called the Nikkei Stock Average and is price-weighted, meaning the influence of each stock on the index depends on its price. This description—225 top-rated Japanese companies in the First Section—matches Nikkei 225 precisely, making it the best answer. For context, the S&P 500 is a U.S. 500-stock index, the Dow Jones Industrial Average comprises 30 U.S. stocks, and the FTSE 100 covers 100 UK companies.