What is Dow Jones?

Dow Jones industrial average began in a small Wall Street office with a hand -written sheet of paper. That was in 1887, when Charles Dow, Edward Jones and Charles Bergstresser decided that investors needed a running description of how the emerging stock market behaves. The first "newsletter" included only 11 shares - nine railways and two other industries. The Dow Jones average debuted in 1896 and has been a national financial icon since then. It now includes 30 of the largest publicly held companies, although the list is no longer strictly industrial. For example, November 1, 1999, for example, dropped Chevron, Goodyear Rubber, Sears Roebuck and Union Carbide in favor of Intel, Micosoft, Home Depot and SBC Communications. For many observers, this signaled full flowers of internet age and a decline in industry. From September 3, 1929 to 8 July 1932, the index fell from 386.1 to 41.22 and mirrored great depression. It took 22 years to obtain its former altitude. The highest recorded closure was 14 164.53 9 October 2007 but the followingBust from 2008 dragged the numbers below 8 000.

Of course, as many analysts emphasize, reactions created by ups and falls in Dow Jones do not always reflect economic reality. For example, if the shares in which you are strongly invested is not one of the Dow Jones 30, the number of no -time respiratory reports is largely irrelevant. The index is a specific X -ray of one segment of the economy, not a complete CAT scan.

Since the index is a weighted price, a significant decline in one price shares, which may be irrelevant to the rest of the index, can negate profits in a number of cost -effective public offers. The Dow Jones price diameter is also configured to reflect such phenomena as stock division. Therefore, the average times of 30 30 years sometimes create a lower number than the final Dow numbers.