0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Dow Jones Index Definition?
The New York Stock Exchange is the largest stock exchange in the world by market capitalization. The more than 2,000 companies listed account for more than 13 trillion dollars of capital. When investors look for an indication of market trends, they generally look at one of the many market indexes used to measure market buys and sells. One of the most closely watched market indexes is the Dow Jones Index, established in 1896. It shows how 30 of the largest publicly-traded U.S. companies have traded during any given session.What are the Dow components?The Dow Jones Index includes some of the largest and most well-known companies in many sectors of the U.S. economy. The companies are a mix of historically iconic names, such as Dupont, Proctor & Gamble, Exxon Mobil and General Electric, and newer companies that are more recent corporate successes, such as Wal-Mart, Microsoft, Intel and McDonald's. Occasionally the make-up of the Dow Index changes. Companies are added or dropped as company stock prices and overall economic health decline. In 2008 for instance, Kraft Foods replaced American International Group (AIG), and, in 2009, The Travelers Companies and Cisco Systems replaced General Motors and Citigroup. When companies are replaced, the scale calculations and weighted average equations are adjusted, so the average price remains the same, and the overall Dow level does not flucuate due to the addition or removal of companies.Many of the companies included in the Dow Jones Index are considered "blue chip" stocks and, thus, good long-term investments. Why the Dow is so widely used as an indexThe 30 companies that make up the Dow Jones Index tend to trade heavily during an average trading session. That heavy trading, along with the combined volume of shares issued by these 30 companies, provides a good benchmark or indicator about what the rest of the market is doing. The idea behind the Dow index is that as the publicly-traded stocks of these powerful companies go, so goes the rest of the market. So when the news reports that the Dow Index dropped 300 points, it means that many investors sold their investments and took some of their money out of the stock market.The Dow Jones Index is based on 30 of the most stable publicly-traded companies in the market. Therefore, when the stocks of these companies fluctuate up or down, it is a good indication of how the rest of the stock market is performing. The Dow Jones Index is one of the most historically reliable indexes to indicate the health and volatility of market investments.
If you bought 100 dollars of NYSE in 1920 what would it be worth?
NYSE is not a stock or even a measured average. Did you mean the Dow Jones Industrial Average? That is what people typically refer to if they say the market is up or down. Dow Jones Industrial Average: Jan 2, 1920: 108.76 Sept 29, 2011: 11,153.98 So, if you bought $100 into a Dow tracking fund (not sure they existed in 1920), it would be worth about $10,255. There are two caveats, first you'd owe capital gains when you sold it and second $100 in 1920 was a lot of money, According to the difference in the CPI, $100 in 1920 is worth roughly $1000 today: Historical value of money comparison site: http://www.measuringworth.com/uscompare/
Explain the DSE20 index?
Like the DOW industrials, the DSE20 is supposed to represent a group of companies on the DSE, or East Pakistan Stock Exchange, (which was itself set up around 1954 when they couldn't play ball with the other local stock exchanges). In the same way that the DOW is a useless piece of information (GM was on the DOW for years, now it isn't, it is in bankruptcy, so GM is replaced by another company. How useful a measure is the DOW now that GM isn't on it any longer? What use is it to compare 20 companies that change their composition from year to year? If you want a general idea of where a country's economy is heading, use a more general index, such as the S&P500, where you at least get almost all of the economic activity that a country or region is supporting. The DSE seems to have only 236 companies on it, and picking 20 of those can't be all that informative. Link stored below reads as follows: http://www.dsebd.org/dse20_share.php
What is the major dramatic curve of The Emperor Jones?
Ugh, I don't know. Would this happen to be for Higgin's class? Higgin's class is so hard
How much does the earth curve?
A lot, so much that its a complete circle....
How is the Dow Jones industrial average computed?
It is calculated or computed by adding closed prices of stocks and then dividing by the number of stocks on the Dow Jones so that would be 30.
Is the NYSE the same as the Dow Jones?
NYSE stands for New York Stock Exchange, so not really, Dow is a company
What is the DOW?
"The DOW" refers to the Dow Jones Industrial Average; which is a general measure of the stock market based on a number of key factors. It's tracked by Dow Jones & Company a financial firm in New York City. It's one of the major stock market indices that people use to measure the health of the economy. Generally when the DOW is high the economy is good, and when the DOW drops the economy isn't doing so well.
What are Dow Jones futures?
The Chicago Board of Trade's DJIA Futures contract is a futures contract on the entire Dow Jones Industrial Average. This one's REALLY weird, so hang on:The value of this contract is 10 times the Dow Jones Industrial Average. If the Dow is 10,000 today, the price of a futures contract on it is $100,000.Next, on the date of settlement cash is delivered, not 300 shares of stock.Third, this futures contract requires daily settlement payments, and this is why the DJIA futures contract is so weird. You and I are counterparties to one of these things. You're the futures buyer, or the long; I am the futures seller, or the short. The Dow was at 9000 when we did the deal, so you paid me $90,000, which went into my brokerage account. If the Dow closes tomorrow at 9010, I have to pay you $100--ten times the delta in the Dow. Similarly, if the Dow closes tomorrow at 8990, you pay me $100.
Is there anything similar to the DOW?
The Dow Jones Transportation Average, which was also created by Dow. Along with the NASDAQ Composite, the S&P 500 Index, and the Russell 2000 Index, the Dow is among the most closely watched benchmark indexes tracking targeted stock market activity. So yes, there are similar indexes which attempt to capture the movement and activity of the American stock markets.
The Dow Jones Average is Down 15 Dollars What does this phrase mean in laymans term?
Not very much. Sad but true. They calculate the Dow by adding together the prices of the 30 stocks that comprise the Dow Jones Industrial Average, then dividing by a figure that's SUPPOSED to linearize the DJIA. It takes into account things like stock splits. Right now, the divisor is below one, so the DJIA is higher than the combined stock prices of the 30 companies in the DJIA. The DJIA is generally held as an indicator of the health of the market. There are better indices--the Standard & Poor's 500 is a good one--but the Dow is traditional.
What is the Dow Jones Industrial Average at this moment in time?
I’m sure you’ve heard of the Dow Jones Industrial Average (DJIA), or simply “the Dow”. It’s reported on the news every evening. The Dow was up or down today. What does that really mean? Sure, you know that it has something to do with the stock market, but beyond that you’re unclear, right? Don’t be discouraged. Most Americans couldn’t tell you much about the DJIA. The Dow Jones Industrial average is one of the oldest surviving and oft quoted stock market indices in the world. It was started in 1896 by Charles Dow. When it was started it tracked 12 stocks. Today it represents 30 stocks. Despite being used as a gauge of stock market performance by many I think there are a couple problems with the Dow. The first is that it is tiny. People often assume that the Dow represents the overall movements of the entire stock market. But it only represents the movements of 30 stocks. Compared to the over 4,000 actively traded stocks in the U.S. markets, the Dow is a gauge of very little indeed. Another problem with the DJIA is that it is a price-weighted index. That means that the index gives a larger weight to the underlying stock components with the higher stock prices. It does not assign weight to is components by how much of their industry they comprise or the market capitalization of the individual corporations, the way other more useful indices do. So the next time you hear about the Dow being up or down, don’t assume that the entire market is following suit. This tiny little index is an outdated gauge of 30 individual stocks. If you really want a broader picture of how the overall U.S. market is doing, I suggest looking at a better, more inclusive index like the Russell 3000 or the Wilshire 5000.
How many stocks comprise the stock exchange?
in the Dow Jones its 30 and in the S&P 500 there is 500. The NASDAQ has a ton and so does the NYSE... They are just weighted averages.
The Dow Jones Industrial Average took 76 years to cross 1000 doing so on Novemeber 14 1972 When did it break 10000?
28-Mar-99
When did the Dow Dow bird became extinct?
The Dodo bird was last seen in 1662, so it went extinct about that time.
What is the ticker symbol for the Dow Jones Industrial Average?
The ticker symbol for the Dow Jones industrial average = $DJX; at least this is for practical purposes because this is the symbol to input if you want to know the average at any point in time. Can you buy something with this symbol as you would buy a stock or a stock fund? The answer to this is no. If you want to buy the average, so to speak, then look for an Exchange-Traded Fund (ETF) that carries the 30 stocks of the DOW. Likely some ETF's may closely replicate the DOW, but may not be exactly the same. This question is for future research and one example is an iShare with ticker = IYJ. There are many ETF's out there. Check 'em out.
What is the symbol for Dow Jones Industrial Average in Charles Schwab system?
The ticker symbol for the Dow Jones industrial average = $DJX; at least this is for practical purposes because this is the symbol to input if you want to know the average at any point in time. Can you buy something with this symbol as you would buy a stock or a stock fund? The answer to this is no. If you want to buy the average, so to speak, then look for an Exchange-Traded Fund (ETF) that carries the 30 stocks of the DOW. Likely some ETF's may closely replicate the DOW, but may not be exactly the same. This question is for future research and one example is an iShare with ticker = IYJ. There are many ETF's out there. Check 'em out.
