How do I read the Dow Jones Stock Market Pts example it’s at 13,000 what does that mean?
Dow Jones Stock Market indices were created by 19th century by Wall Street Journal Editor. This index was compiled in such a way, so that you can measure the performance of the industrial components of
The present 30 companies are listed below:
Alcoa, Altria Group, American Express, American International Group, AT&T, Boeing, Caterpillar, Citygroup, Coca-Cola, DuPont, ExxonMobil, General Electric, General Motors, Hewlett-Packard, Home Depot, Honeywell, Intel, IBM, Johnson & Johnson, JPMorgan Chase, McDonald’s, Merck, Microsoft, Pfizer, Procter & Gamble, United Technologies Corporation, Verizon Communication, Wal-Mart, and Walt Disney.
When these companies are replaced by another the scale factor is also adjusted accordingly. To calculate all the DJIA, the stocks of all the companies are added and then divided by the divisor. So this calculation is a simple arithmetic average calculation. These days, however there have been a lot of complexities related to the calculations as the company mix resulted ion lots of changes in the entire calculations. The Dow Jones Industrial Average (DJIA) is a collection of stocks that represent a particular section of the economy. Though previously the attention was more on heavy manufacturing (steel, automobiles, etc), economy has shifted and diversified its attention now. This is also is also reflected in DJIA. The 30 companies represented and considered for calculations from the various sectors of the highest performing regions.