people were talking about the stocks going down 312 points today. does this mean the dow jones industrial average went down 312 points? what is the dow jones industrial average? is that a stock? i know i sound like an idiot, but please help me.
go to the source
http://www.djindexes.com/mdsidx/index.cfm?event=showAverages
DJIA is an index of 30 stocks - largest companyies in America (Blue Chips)
it is a price-weighted index of thirty stocks that all together are considered to be indicative of the overall stock market. they are bellweather stocks that try to cover all major segments of the economy.
they consist of large companies such as General Electric, 3M, IBM, Disney, JPMOrgan Chase, etc.
it is one of the least broad of the indices.. comapre it to the S&P 500, which has 500 stocks, or the Wilshire or Russell indices that have thousands.
so they take each stock, and as of the 'beginning date' the price-weighted average is assigned a value, so that in teh end the Index is worth 1. as each stock goes up or down, it affects the index's value.
Is the way the value of money translates in the market.
Look it up on wikipedia
Squadfix has the answer. Study it and you will see what the fluctuation is all about.
It is a group of stocks.
0 comments:
Post a Comment