lafeengasia
Joined: 21 Jul 2013
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Location: US
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 Posted: Sun Jul 21, 2013 3:32 am Post subject: What is the Dow Jones Industrial Average- |
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The Dow Jones Industrial Average, or DJIA, is a stock index consisting of the average price of thirty of largest company stocks that are traded on the major stock exchanges in the United States, and the . The DJIA was founded in 1896 by Charles Dow as a twelve stock index to show investors whether the overall market was up or down. The Dow gained popularity as a market indicator when the Wall Street Journal began publishing the stock index daily in October 1896.
Today, the DJIA is a benchmark stock index watched by investors in countries all over the world and serves as a key barometer of the overall health of the stock market. Investors everywhere measure their portfolio against the Dow’s performance.
Stocks Included in the Dow
The Dow currently consists of 30 stocks. Many are household names, and all are leaders in their respective industries. The 30 stocks currently in the DJIA are:
3M Company
Alcoa Incorporated
American Express
Bank of America
Boeing
Caterpillar
Chevron
Cisco
Coca-Cola
DuPont
Exxon Mobil
General Electric Company
Hewlett-Packard
Home Depot
Intel
IBM
Johnson and Johnson
JPMorgan Chase
Kraft Foods
McDonald’s
Merck
Microsoft
Pfizer
Proctor and Gamble
Travelers Companies
United Technologies
Verizon Communications
Wal-Mart
Walt Disney Company
The list of stocks in the DJIA is reviewed annually by the Averages Committee. The stock index is modified as necessary, due to mergers, bankruptcies or other significant changes to the businesses included in the Dow.
Calculating the Dow
The stock index was originally calculated by totaling the prices of all of the stocks in the DJIA and then dividing that sum by the Phillies 6 Ryan Howard Blue 2010 All Star Jerseys total number of stocks in the Dow. The same basic calculation is done today, but the divisor is no longer the total number of stocks in the DJIA.
The divisor has been adjusted over the years to Tigers 26 Boesch red 2010 All Star Jerseys reflect changes to the stock index since its founding. Stocks have been added to the Dow, and some companies have split their stock one or more times. Other companies have gone out of business and been removed from the DJIA.
The divisor is recalculated after any change is made to the stock index. The divisor for the Dow is published daily by the Wall Street Journal.
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