FACTOID # 11: Oklahoma has the highest rate of women in State or Federal correctional facilities.
 
 Home   Encyclopedia   Statistics   States A-Z   Flags   Maps   FAQ   About 
   
 
WHAT'S NEW
 

SEARCH ALL

FACTS & STATISTICS    Advanced view

Search encyclopedia, statistics and forums:

 

 

(* = Graphable)

 

 


Encyclopedia > Dow Jones Industrial Average
Linear graph of the DJIA from 1901 until today
Logarithmic graph of the DJIA from 1901 until today

The Dow Jones Industrial Average (NYSEDJI, also called the DJIA, Dow 30, or informally the Dow Jones or The Dow) is one of several stock market indices created by nineteenth-century 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. Image File history File links This is a lossless scalable vector image. ... Image File history File links This is a lossless scalable vector image. ... Image File history File links This is a lossless scalable vector image. ... Image File history File links This is a lossless scalable vector image. ... A logarithmic scale is a scale of measurement that uses the logarithm of a physical quantity instead of the quantity itself. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... A comparison of three major stock indices: the NASDAQ Composite, Dow Jones Industrial Average, and S&P 500. ... Alternative meaning: Nineteenth Century (periodical) The 19th century lasted from 1801 to 1900 in the Gregorian calendar (using the Common Era system of year numbering). ... The Wall Street Journal (WSJ) is an international daily newspaper published by Dow Jones & Company in New York City, New York, USA, with Asian and European editions, and a worldwide daily circulation of more than 2 million as of 2006, with 931,000 paying online subscribers. ... Dow Jones redirects here. ... Charles Henry Dow (November 6, 1851 – December 4, 1902) was an American journalist who co-founded Dow Jones & Company with Edward Jones and Charles Bergstresser. ... A stock market is a market for the trading of company stock, and derivatives of same; both of these are securities listed on a stock exchange as well as those only traded privately. ... The Dow Jones Transportation Average (also called the Dow Jones Transports; DJTA) is the oldest U.S. stock market index. ...


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. Stock split refers to a corporate action that increases the shares in a public company. ... In mathematics and statistics, the arithmetic mean (or simply the mean) of a list of numbers is the sum of all the members of the list divided by the number of items in the list. ... In mathematics, a divisor of an integer n, also called a factor of n, is an integer which evenly divides n without leaving a remainder. ...

Contents

History

The Dow fell 22.61% on Black Monday (1987). Two days later it rose 10.15%.
The Dow fell 14.3% after the September 11, 2001 attacks. Exchanges were closed between September 10th and September 17th.

First published on May 26, 1896, the DJIA represented the average of twelve stocks from various important American industries. Of those original twelve, only General Electric remains part of the average. The other eleven were: Image File history File links This is a lossless scalable vector image. ... Image File history File links This is a lossless scalable vector image. ... DJIA (19 July 1987 through 19 January 1988) FTSE 100 Index (19 July 1987 through 19 January 1988) Black Monday is the name given to Monday, October 19, 1987, when the Dow Jones Industrial Average (DJIA) fell dramatically, and on which similar enormous drops occurred across the world. ... Image File history File links This is a lossless scalable vector image. ... Image File history File links This is a lossless scalable vector image. ... A sequential look at United Flight 175 crashing into the south tower of the World Trade Center The September 11, 2001 attacks (often referred to as 9/11—pronounced nine eleven or nine one one) consisted of a series of coordinated terrorist[1] suicide attacks upon the United States, predominantly... is the 146th day of the year (147th in leap years) in the Gregorian calendar. ... Year 1896 (MDCCCXCVI) was a leap year starting on Wednesday (link will display calendar). ... “GE” redirects here. ...

When it was first published, the index stood at 40.94. It was computed as a direct average, by first adding up stock prices of its components and dividing by the number of stocks. Many of the biggest percentage price moves in The Dow occurred early in its history, as the nascent industrial economy matured. ... Unilever is a widely listed [1] [2] multi-national corporation, formed of Anglo-Dutch parentage, that owns many of the worlds consumer product brands in foods, beverages, cleaning agents and personal care products. ... The American Tobacco Company was founded in 1890 by J. B. Duke as a merger between a number of tobacco manufacturers including Allen and Ginter. ... Integrys Energy Group, Inc. ... Millennium Chemicals Inc is a U.S. based chemical company. ... Lyondell Chemical Company is based in Houston, Texas. ... The North American Company was a former holding company headquartered in Chicago, Illinois. ... The United States Steel Corporation (NYSE: X) is an integrated steel producer with major production operations in the United States and Central Europe. ... The United States Rubber Company was a rubber manufacturer founded by Charles R. Flint in 1892. ... Categories: Companies traded on NYSE | Stub | Aerospace manufacturing companies | Fortune 500 companies | Companies based in North Carolina ... Michelin (full name: Compagnie Générale des Établissements Michelin) (Euronext: ML) based in Clermont-Ferrand in the Auvergne région of France, is primarily a tyre manufacturer. ...

  • The index hit its all-time low of 28.48 during the summer of 1896.

The index closed at 71.42 on July 30, 1914 and so did the New York Stock Exchange for the next four months. Some historians believe the reason for this was worry that markets would plunge because of panic over the onset of the World War I. An alternative explanation is that Secretary of the Treasury, William McAdoo closed the exchange because he wanted to conserve the US gold stock in order to launch the Federal Reserve System later that year with enough gold to keep the US on the gold standard. That first day it reopened on December 12, 1914, the index closed at 74.56, thus the War had not had the predicted impact. The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... “The Great War ” redirects here. ... McAdoo is the name of two places in the United States: McAdoo Township in Kansas McAdoo in Pennsylvania William Gibbs McAdoo was Secretary of the Treasury. ... is the 346th day of the year (347th in leap years) in the Gregorian calendar. ... Year 1914 (MCMXIV) was a common year starting on Thursday (link will display the full calendar) of the Gregorian calendar (or a common year starting on Wednesday of the 13-day-slower Julian calendar). ...


In 1916, the number of stocks in the index was increased to twenty and the new version of the index was 27% smaller than the old index. Finally, it was increased to thirty stocks in 1928, near the height of the "roaring 1920s" bull market. The crash of 1929 and the ensuing Great Depression returned the average to its starting point, almost 90% below its peak, by July 8, 1932. The highs of September 3, 1929 would not be surpassed until 1954. A bull market is a prolonged period of time when prices are rising in a financial market faster than their historical average. ... The Great Depression was a global economic slump that began in 1929 and bottomed in 1933. ... For other uses, see The Great Depression (disambiguation). ... is the 189th day of the year (190th in leap years) in the Gregorian calendar. ... Year 1932 (MCMXXXII) was a leap year starting on Friday (the link will display full 1932 calendar) of the Gregorian calendar. ... is the 246th day of the year (247th in leap years) in the Gregorian calendar. ... Year 1929 (MCMXXIX) was a common year starting on Tuesday (link will display the full calendar) of the Gregorian calendar. ...

  • The largest one-day percentage gain in the index, 15.34%, happened on March 15, 1933, in the depths of the 1930s bear market.
  • The post-World War II bull market, which brought the market well above its 1920s highs, lasted until 1966.
  • On November 14, 1972 the average closed above 1,000 (1,003.16) for the first time, during a relatively brief rally in the midst of a lengthy bear market.

The 1980s and especially the 1990s saw a very rapid increase in the average, though severe corrections did occur along the way. is the 74th day of the year (75th in leap years) in the Gregorian calendar. ... Year 1933 (MCMXXXIII) was a common year starting on Sunday (link will display full calendar) of the Gregorian calendar. ... A bear market is a prolonged period of time when prices are falling in a financial market. ... Combatants Allied powers: China France Great Britain Soviet Union United States and others Axis powers: Germany Italy Japan and others Commanders Chiang Kai-shek Charles de Gaulle Winston Churchill Joseph Stalin Franklin Roosevelt Adolf Hitler Benito Mussolini Hideki Tōjō Casualties Military dead: 17,000,000 Civilian dead: 33,000... is the 318th day of the year (319th in leap years) in the Gregorian calendar. ... Year 1972 (MCMLXXII) was a leap year starting on Saturday (link will display full calendar) of the Gregorian calendar. ...

  • The largest one-day percentage drop since 1914 occurred on "Black Monday", October 19, 1987, when the average fell 22.61%.
  • The largest one-day percentage gain since the 1930s, 10.15%, occurred two days later on Wednesday, October 21, bringing the Dow back above 2,000 and in line for a yearly gain.
  • On November 21, 1995 the DJIA closed above 5,000 (5,023.55) for the first time.
  • On March 29, 1999, the average closed above the 10,000 mark (10,006.78) after flirting with it for two weeks. This prompted a celebration on the trading floor, complete with party hats.
  • On May 3, 1999, the Dow achieved its first close above 11,000 (11,014.70).

The uncertainty of the early 2000s brought a significant bear market. DJIA (19 July 1987 through 19 January 1988) FTSE 100 Index (19 July 1987 through 19 January 1988) Black Monday is the name given to Monday, October 19, 1987, when the Dow Jones Industrial Average (DJIA) fell dramatically, and on which similar enormous drops occurred across the world. ... is the 292nd day of the year (293rd in leap years) in the Gregorian calendar. ... Year 1987 (MCMLXXXVII) was a common year starting on Thursday (link displays 1987 Gregorian calendar). ... is the 294th day of the year (295th in leap years) in the Gregorian calendar. ... is the 325th day of the year (326th in leap years) in the Gregorian calendar. ... Year 1995 (MCMXCV) was a common year starting on Sunday (link will display full 1995 Gregorian calendar). ... is the 88th day of the year (89th in leap years) in the Gregorian calendar. ... This article is about the year. ... is the 123rd day of the year (124th in leap years) in the Gregorian calendar. ... This article is about the year. ... A bear market is a prolonged period of time when prices are falling in a financial market. ...

  • On January 14, 2000, the DJIA reached a record high of 11,750.28 in trading before settling at a record closing price of 11,722.98; these two records would not be broken until October 3, 2006.
  • The largest one-day point gain in the Dow, an advance of 499.19, or 4.93%, occurred on March 16, 2000, as the broader market approached its top.
  • The largest one-day point drop in DJIA history occurred on September 17, 2001, the first day of trading after the September 11, 2001 attacks, when the Dow fell 684.81 points, or 7.1%. By the end of that week, the Dow had fallen 1,369.70 points, or 14.3%. A recovery attempt allowed the average to close the year above 10,000.
  • By mid-2002, the average had returned to its 1998 level of 8,000.
  • On October 9, 2002, the DJIA bottomed out at 7,286.27 (intra-day low 7,197.49), its lowest close since October 1997.
  • By the end of 2003, the Dow returned to the 10,000 level.
  • On January 9, 2006 the average broke the 11,000 barrier for the first time since June 2001.
  • In October 2006, four years after its bear market low, the DJIA set fresh record theoretical, intra-day, daily close, weekly, and monthly highs for the first time in almost seven years, closing above 12,000 for the first time on the 19th anniversary of Black Monday.
  • On February 27, 2007, the Dow Jones Industrial Average fell 415.30 points, its biggest point drop since 2001, to close at 12,216.96 points. This move confirmed a correction that eventually reached below the 12,000 level. The initial drop was caused by a global sell-off after Chinese stocks experienced a mini-crash.
  • On April 25, 2007, the Dow passed 13,000 in trading and closed above the milestone for the first time. Less than three months later, on July 19, the average set an all-time closing high above the 14,000 level: the fastest 1,000-point advance for the index since 1999.
  • As of August 2007, the average is experiencing increased volatility and another correction, falling about 10% so far from its highs back to the higher 12,000 range. On August 6, the Dow jumped more than 287 points (2.2%) - its largest point gain since July 2006 and its largest percentage gain since March 2003 - reversing a loss of similar magnitude in the previous trading session, although the losses are far outstripping the gains overall. Due to volatility, the Dow opened higher on August 17 by over 300 points, the third time in its history that the average opens that high.

Note: For current record highs, please see Closing Milestones of the Dow Jones Industrial Average. is the 14th day of the year in the Gregorian calendar. ... Year 2000 (MM) was a leap year starting on Saturday (link will display full 2000 Gregorian calendar). ... is the 276th day of the year (277th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... March 16 is the 75th day of the year (76th in leap years) in the Gregorian calendar. ... Year 2000 (MM) was a leap year starting on Saturday (link will display full 2000 Gregorian calendar). ... is the 260th day of the year (261st in leap years) in the Gregorian calendar. ... Year 2001 (MMI) was a common year starting on Monday (link displays the 2001 Gregorian calendar). ... A sequential look at United Flight 175 crashing into the south tower of the World Trade Center The September 11, 2001 attacks (often referred to as 9/11—pronounced nine eleven or nine one one) consisted of a series of coordinated terrorist[1] suicide attacks upon the United States, predominantly... is the 282nd day of the year (283rd in leap years) in the Gregorian calendar. ... Also see: 2002 (number). ... Year 2003 (MMIII) was a common year starting on Wednesday of the Gregorian calendar. ... is the 9th day of the year in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... DJIA (19 July 1987 through 19 January 1988) FTSE 100 Index (19 July 1987 through 19 January 1988) Black Monday is the name given to Monday, October 19, 1987, when the Dow Jones Industrial Average (DJIA) fell dramatically, and on which similar enormous drops occurred across the world. ... is the 58th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... is the 115th day of the year (116th in leap years) in the Gregorian calendar. ... is the 200th day of the year (201st in leap years) in the Gregorian calendar. ... is the 218th day of the year (219th in leap years) in the Gregorian calendar. ... This article is a summary of the closing milestones of the Dow Jones Industrial Average, the best-known stock market index in the world. ...


Criticism

With the current inclusion of only 30 stocks, some argue[citation needed] the DJIA cannot function as an index of overall market performance even though it is the most cited and most widely recognized of the stock market indices. Historically, though, it has performed very much in line with the broader U.S. market.[citation needed]


Additionally, the DJIA is criticized for being a price-weighted average, which gives relatively higher-priced stocks more influence over the average than their lower-priced counterparts. For example, a $1 increase in a lower-priced stock can be negated by a $1 decrease in a much higher-priced stock, even though the first stock experienced a larger percentage change. Many critics of the DJIA recommend the float-adjusted market-value weighted S&P 500 or the Dow Jones Wilshire 5000, the latter of which includes all U.S. securities with readily available prices, as better indicators of the U.S. market. This article needs to be wikified. ... The S&P 500 is an index containing the stocks of 500 Large-Cap corporations, most of which are American. ... The Dow Jones Wilshire 5000 Total Stock Market Index, also known as the Dow Jones Wilshire 5000 Composite Index or simply the Wilshire 5000 is a broad base stock market index often used to represent the entire United States stock market. ...


Another issue with the Dow is that not all 30 components open at the same time in the morning. Only a few components open at the start and the posted opening price of the Dow is determined by the price of those few components that open first and the previous day's closing price of the remaining components that haven't opened yet; therefore, the posted opening price on the Dow will always be close to the previous day's closing price (which can be observed by looking at Dow price history) and will never accurately reflect the true opening prices of all its components. Thus, in terms of candlestick charting theory, the Dow's posted opening price cannot be used in determining the condition of the market. A candlestick chart is a style of bar-chart used primarily to describe price movements of an equity over time. ...


Wall St. Journal, 28 February 2007, After a Rough Morning, A Data Backup Jolts The Blue-Chip Average</ref> The SEC is investigating the issue.[1] “Securities and Exchange Commission” redirects here. ...


Companies comprising the DJIA

The individual components of the DJIA are occasionally changed as market conditions warrant. They are selected by the editors of The Wall Street Journal. When companies are replaced, the scale factor used to calculate the index is also adjusted so that the value of the average is not directly affected by the change.


On November 1, 1999, Chevron, Goodyear Tire and Rubber Company, Sears Roebuck, and Union Carbide were removed from the DJIA and replaced by Intel, Microsoft, Home Depot, and SBC Communications. Intel and Microsoft became the first two companies traded on the NASDAQ exchange to be listed in the DJIA. On April 8, 2004, another change occurred as International Paper, AT&T, and Eastman Kodak were replaced with Pfizer, Verizon, and AIG. On December 1, 2005 AT&T's original T symbol returned to the DJIA as a result of the SBC Communications and AT&T merger. is the 305th day of the year (306th in leap years) in the Gregorian calendar. ... This article is about the year. ... Chevron Corporation (NYSE: CVX) is one of the worlds largest global energy companies. ... Goodyear Tire and Rubber Company was founded in 1898 by Frank Seiberling. ... Sears, Roebuck and Company is an American mid-range chain of international department stores, founded by Richard Sears and Alvah Roebuck in the late 19th century. ... This article or section is incomplete and may require expansion and/or cleanup. ... Intel Corporation (NASDAQ: INTC, SEHK: 4335), founded in 1968 as Integrated Electronics Corporation, is an American multinational corporation that is best known for designing and manufacturing microprocessors and specialized integrated circuits. ... Microsoft Corporation, (NASDAQ: MSFT, HKSE: 4338) is a multinational computer technology corporation with global annual revenue of US$44. ... The Home Depot (NYSE: HD) is an American retailer of home improvement and construction products. ... SBC Communications NYSE: SBC is an American telecommunications company based in San Antonio, Texas. ... NASDAQ in Times Square, New York City. ... April 8 is the 98th day of the year (99th in leap years) in the Gregorian calendar. ... Year 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ... International Paper (NYSE: IP) is an American pulp and paper company, the largest pulp and paper company in the world and the largest private owner of timberland in the United States. ... AT&T Inc. ... Eastman Kodak Company (NYSE: EK) is an American multinational public company. ... Pfizer Incorporated (NYSE: PFE) is the worlds largest research-based pharmaceutical company[1].[1] The company is based in New York City. ... This article or section should include material from Bell Atlantic This article or section should include material from GTE Verizon Communications (NYSE: VZ) is a local exchange telephone company formed by the merger of Bell Atlantic, a former Bell Operating Company, and GTE, which was the largest independant local exchange... American International Group, Inc. ... is the 335th day of the year (336th in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... AT&T Inc. ... SBC Communications NYSE: SBC is an American telecommunications company based in San Antonio, Texas. ... AT&T Inc. ...


The Dow Jones Industrial Average consists of the following 30 companies:[2]

Company Symbol Industry
3M (NYSEMMM) Diversified Industrials
Alcoa (NYSEAA) Aluminum
Altria Group (NYSEMO) Tobacco, foods
American Express (NYSEAXP) Consumer Finance
American International Group (NYSEAIG) Full Line Insurance
AT&T (NYSET) Telecoms
Boeing (NYSEBA) Aerospace/Defense
Caterpillar (NYSECAT) Commercial Vehicles & Trucks
Citigroup (NYSEC) Banks
Coca-Cola (NYSEKO) Beverages
DuPont (NYSEDD) Commodity Chemicals
ExxonMobil (NYSEXOM) Integrated Oil & Gas
General Electric (NYSEGE) Diversified Industrials
General Motors (NYSEGM) Automobiles
Hewlett-Packard (NYSEHPQ) Diversified Computer Systems
Home Depot (NYSEHD) Home Improvement Retailers
Honeywell (NYSEHON) Diversified Industrials
Intel (NASDAQINTC) Semiconductors
IBM (NYSEIBM) Computer Services
Johnson & Johnson (NYSEJNJ) Pharmaceuticals
JPMorgan Chase (NYSEJPM) Banks
McDonald's (NYSEMCD) Restaurants & Bars
Merck (NYSEMRK) Pharmaceuticals
Microsoft (NASDAQMSFT) Software
Pfizer (NYSEPFE) Pharmaceuticals
Procter & Gamble (NYSEPG) Non-Durable Household Products
United Technologies Corporation (NYSEUTX) Aerospace
Verizon Communications (NYSEVZ) Telecoms
Wal-Mart (NYSEWMT) Broadline Retailers
Walt Disney (NYSEDIS) Broadcasting & Entertainment

3M Company (NYSE: MMM), formerly Minnesota Mining and Manufacturing Company until 2002, is an American corporation with a worldwide presence. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... This article needs additional references or sources for verification. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... Aluminum is a soft and lightweight metal with a dull silvery appearance, due to a thin layer of oxidation that forms quickly when it is exposed to air. ... Altria Group, Inc. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... Shredded tobacco leaf for pipe smoking Tobacco can also be pressed into plugs and sliced into flakes Tobacco is an agricultural product processed from the fresh leaves of plants in genus Nicotiana. ... American Express (NYSE: AXP), sometimes known as AmEx or Amex, is a diversified global financial services company, headquartered in New York City. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... American International Group, Inc. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... AT&T Inc. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... Telecommunication is the extension of communication over a distance. ... The Boeing Company (NYSE: BA, TYO: 7661 ) is a major aerospace and defense corporation, originally founded by William Boeing. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... Caterpillar Inc. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... Citigroup Inc. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... For other uses, see Bank (disambiguation). ... The Coca-Cola Company (NYSE: KO) is one of the largest manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... The word drink is primarily a verb, meaning to ingest liquids, see Drinking. ... Dupont, DuPont, Du Pont, or du Pont may refer to: // E.I. du Pont de Nemours and Company, the worlds third largest chemical company Du Pont Motors Gilbert Dupont, a French stock brokerage part of retail banking network Crédit du Nord ST Dupont, a French manufacturer of fine... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... For other uses, see Exon (disambiguation). ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... “GE” redirects here. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... General Motors Corporation, also known as GM, is the worlds largest auto company by annual production volume as of 2006, and the second largest by sales volume as of the first half of 2007, behind Toyota Motor Corporation. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... The Hewlett-Packard Company (NYSE: HPQ), commonly known as HP, is a very large, global company headquartered in Palo Alto, California, United States. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... The Home Depot (NYSE: HD) is an American retailer of home improvement and construction products. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... Honeywell Heating Specialties Company Stock Certificate dated 1924 signed by Mark C. Honeywell - courtesy of Scripophily. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... Intel redirects here. ... NASDAQ in Times Square, New York City. ... IBM redirects here. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... Johnson & Johnson (NYSE: JNJ) is a global American pharmaceutical, medical devices and consumer packaged goods manufacturer founded in 1886. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... The following is a list of the top 50 pharmaceutical and biotech companies ranked by healthcare revenue. ... JPMorgan Chase (NYSE: JPM TYO: 8634 ) is one of the oldest financial services firms in the world. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... McDonalds Corporation (NYSE: MCD) is the worlds largest chain of fast-food restaurants, primarily selling hamburgers, chicken, french fries, milkshakes and soft drinks. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... Merck & Co. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... The following is a list of the top 50 pharmaceutical and biotech companies ranked by healthcare revenue. ... Microsoft Corporation, (NASDAQ: MSFT, HKSE: 4338) is a multinational computer technology corporation with global annual revenue of US$44. ... NASDAQ in Times Square, New York City. ... Computer software (or simply software) refers to one or more computer programs and data held in the storage of a computer for some purpose. ... Pfizer Incorporated (NYSE: PFE) is the worlds largest research-based pharmaceutical company[1].[1] The company is based in New York City. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... The following is a list of the top 50 pharmaceutical and biotech companies ranked by healthcare revenue. ... Procter & Gamble Co. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... United Technologies Corporation (UTC) (NYSE: UTX) is a multinational corporation based in Hartford, Connecticut, USA, and is the 20th largest U.S. manufacturer. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... Verizon Communications, Inc. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... Telecommunication is the extension of communication over a distance. ... Wal-Mart Stores, Inc. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... The Walt Disney Company (NYSE: DIS) is one of the largest media and entertainment corporations in the world. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ...

Calculation

To calculate the DJIA, the sum of the prices of all 30 stocks is divided by a divisor. The divisor is adjusted in case of splits, spinoffs or similar structural changes, to ensure that such events do not in themselves alter the numerical value of the DJIA. The initial divisor was the number of component companies, so that the DJIA was at first a simple arithmetic average; the present divisor, after many adjustments, is less than one (meaning the index is actually larger than the sum of the prices of the components). That is: The Dow Jones Industrial Average (DJIA) is a price-weighted index that is calculated by dividing the sum of the prices of the 30 component stocks (Dow Jones Industrial Average components) by a number called the index divisor (DJIA Divisor). ...

where p are the prices of the component stocks and d is the Dow Divisor.


Events like stock splits or changes in the list of the companies composing the index alter the sum of the component prices. In these cases, in order to avoid discontinuity in the index, the Dow divisor is updated so that the quotations right before and after the event coincide:

See also

This article is a summary of the closing milestones of the Dow Jones Industrial Average, the best-known stock market index in the world. ... The Dow Jones Transportation Average (also called the Dow Jones Transports; DJTA) is the oldest U.S. stock market index. ... Dow Theory is a theory on stock price movements that provides a basis for technical analysis. ... Dowism can be both a misspelling (sometimes intentional) and a humorous term. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... The Dow Jones Industrial Average (DJIA) is a price-weighted index that is calculated by dividing the sum of the prices of the 30 component stocks (Dow Jones Industrial Average components) by a number called the index divisor (DJIA Divisor). ...

References

  1. ^ [1] The Times, 2 March 2007, Investigation into NYSE system failure
  2. ^ http://www.djindexes.com/mdsidx/index.cfm?event=components&symbol=DJI

The Times is a national newspaper published daily in the United Kingdom since 1788. ...

External links

Performance


  Results from FactBites:
 
Calculating The Dow Jones Industrial Average (1066 words)
These three are the Nasdaq Composite, Dow Jones Industrial Average (DJIA or "the Dow") and the Standard and Poor's 500.
Dow Jones and Co. was founded in 1882 by Charles Dow, Edward Jones and Charles Bergstresser.
Today, the DJIA is a benchmark that tracks American stocks that are considered to be the leaders of the economy and are on the Nasdaq and NYSE.
  More results at FactBites »

 
 

COMMENTARY     


Share your thoughts, questions and commentary here
Your name
Your comments

Want to know more?
Search encyclopedia, statistics and forums:

 


Press Releases |  Feeds | Contact
The Wikipedia article included on this page is licensed under the GFDL.
Images may be subject to relevant owners' copyright.
All other elements are (c) copyright NationMaster.com 2003-5. All Rights Reserved.
Usage implies agreement with terms, 1022, m