Top Answer
User Avatar
Wiki User
Answered 2010-09-17 21:41:54

Dow Jones Transportation Average - started in 1884 as the Dow Jones Railroad Average

User Avatar

Your Answer

Still Have Questions?

Related Questions

What are index stock options?

An option based on the value of a stock index (like the S&P 500). It's not different than a typical stock option; the only difference is the underlying asset that determines the value of the option (an index price instead of a stock price).Stock market indices play an important role in gauging the economic health and progress of a country. Oftentimes someone will say "the stock market is up" or "down" but that is not necessarily a meaningful statement. Understanding how stock market indices are calculated and their history can be very instrumental in understanding the stock market as a whole.The Origin Of The Stock Market IndexAs stock markets became more and more prevalent in industrialized countries, people began to look for a "barometer" of the stock market as a whole. The very first stock market index was the Dow Jones Transportation Average, which was created by Charles Dow in 1884. It was followed shortly thereafter by many more indexes like the Dow Jones Industrial Average which, in a very modified form, is still widely publicized and followed today.How Indices Are CalculatedA stock market index is generally calculated by combining a weighted average of a set of particular stocks. For example, in the case of the Dow Jones Industrial Average, 30 stocks are weighted by price to get a measurement of the market as a whole. It should be noted that all indices are somewhat arbitrary and are more useful as indicators of relative and historical growth rather than a raw number. Additionally, in many indices stocks often times are added or removed due to bankruptcies or simply becoming less relevant than another stock. Most recently Kraft Foods replace AIG in the Dow Jones Industrial Average.Popular Stock Indices

What is Dow Jones index based upon?

This was a good question as it made me learn the answer myself! Here's the link from wikipedia: http://en.wikipedia.org/wiki/Dow_Jones_Industrial_Average And here's an excerpt explaining the Index. The Dow Jones Industrial Average (NYSE: DJI, also called the DJIA, Dow 30, or informally the Dow industrials, the Dow Jones or The Dow) is one of several stock market indices created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow. Dow compiled the index as a way to gauge the performance of the industrial component of America's stock markets. It is the oldest continuing U.S. market index, aside from the Dow Jones Transportation Average, which Dow also created. Today, the average consists of 30 of the largest and most widely held public companies in the United States. The "industrial" portion of the name is largely historical—many of the 30 modern components have little to do with heavy industry. To compensate for the effects of stock splits and other adjustments, it is currently a scaled average, not the actual average of the prices of its component stocks—the sum of the component prices is divided by a divisor, which changes over time, to generate the value of the index.

What are Points in stock market?

Also called "basis points," a point is 1/100th of a cent, or 1/100th of a percent. - The bond market is measured in basis points, not the stock market. Today, 10/19/2010, the Dow Jones Industrial average was down 165.07 points, or 1.48%. To understand what a point is, you need to know that the index is a weighted average of the stock prices contained within it. Not all stocks are worth the same amount, so they are given a weight, otherwise know as a "divisor" (the divisor changes daily to account for stock splits, mergers, etc). If you multiply the average price of the stocks in the DJIA by the divisor, you will get the value of the index in points. Now, the short version: 1 point is equal to $1. It would cost $165.07 less to buy one share of each stock in the DJIA at the close today than it cost yesterday for the same number of the same stocks.

What is the current stock index for RSO?

The current Stock Report for RSO as of June 17, 2013 is a rate of 6.32, down by 0.01(0.16%). Market capacity is now measured at 664.43 Million at a range of 6.27-6.43 today.

Who is the oldest player on Barcelona fc today?

The oldest player in FC Barcelona today is Andres Inesta

Anything noteworthy today in history 8th of February-?

One noteworthy thing that happened on the 8th of February was the how the NASDAQ stock market index opened for the first time in 1971.

What is the best stock right now?

This depends on your current asset allocation, risk tolerance, and investing horizon. Beginning investors would do best with low-cost index funds. It is impossible to answer this question with a singular answer, as the stock market is very volatile and changes every day. What might be a "good stock" today, could plummet tomorrow. The Motley Fool, www.fool.com, has great forums and articles for researching stocks. Many new investors start out by investing in index funds, which distribute your risk across the entire index of stocks.

Today what will be the trend of Indian stock Market?

The Indian stock will register a positive trend today.

What are the three main stock exchanges today?

common stock, preferred stock, stock split

How social science index is today?


How The Dow Jones Industrial Average Is Calculated?

Since its creation in the late 1890s, the Dow Jones Industrial Average is one of the most storied, well-known and widely quoted measures of stock market performance there is. Despite its long history, how exactly the index's value is calculated remains a mystery to most even those who have been in the industry for years. Believe it or not, it's not as complicated as it sounds. The Dow Jones Industrial Average is a price-weighted index. That means that the price of a stock depends on how heavily it's weighted in the index. A stock priced at $100 carries twice the weight of a stock priced at $50. This differs from market cap-weighted indices like the S&P 500 where the largest companies like General Electric and Microsoft are given the greatest weight. In the Dow, a stock like Boeing priced at around $65 is weighted over twice as heavily as Microsoft (priced around $30) despite Microsoft being over five times larger than Boeing. The Dow contains a total of 30 stocks and the original index value was calculated by simply adding up the prices of each of the components and dividing that number by the number of stocks. Over time, the Dow Jones company realized that events like stock splits as well as adding and removing stocks from the index could potentially skew the continuity of the index's average. Thus, a divisor was created. This value gets adjusted whenever a stock's value is split (so that the Dow doesn't unfairly drop in value due to an accounting event) or when a stock is swapped out in the index (so that the original index value remains in tact taking into account a new stock price). Today, the sum of the individual component prices is then divided by the divisor number in order to arrive at the final Dow Jones Industrial Average value.

What would 1 pound in 1984 be worth today?

£2.51 using the retail price index£3.64 using average earnings(as at 2010 levels)

Which of these state constitutions is the oldest and still in force today?

Massachusetts constitution is the oldest written constitution in force anywhere in the world today.

What are the five oldest animals alive today?

There are a ton of really old animals alive today. The oldest is a tortoise found and held in the Galapagos.

The oldest person living today?

I think the oldest living person is besse cooper

What is the oldest website on the internet?

http://info.cern.ch/ is the oldest website that is still online today

Is the Danish flag the oldest flag still in use today?

It is the oldest NATIONAL flag still in use - it is not the oldest flag.

What is the dow Jones index today?

Based on my research according to the finance section, the Dow Jones index value is 10861.16 and today that is down 1.15% which is a change of 129.62.

Oldest American sport that is still played today?

Baseball is the oldest of the major American teamsports

What is the oldest golden retriever that is alive today?

the oldest golden retriever is 22 years old.

Who is the second oldest person in the world today?

Katie Adelman is the second oldest person in the world

What is the oldest religion on the earth?

Of the major religions still practiced today, Hinduism is probably oldest.

How much 10.000 dollars in 1997 worth today?

$11,242.24 Based on the Consumer Price Index average for each year compiled by the U.S. Bureau of Labor Statistics.

What is the oldest civil rights organization still working today?

The National Rifle Association, founded in 1871, is the oldest civil rights organization in existence today.

Who is the oldest male country music today?

George stait is the oldest male country singer, i think NO I THINK GEORGE JONES IS THE OLDEST

Still have questions?

Trending Questions
Previously Viewed
Unanswered Questions