Examples of Dow Jones index in the following topics:
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- Examples of time series are the daily closing value of the Dow Jones index or the annual flow volume of the Nile River at Aswan.
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- A stock index or stock market index is a method of measuring the value of a section of the stock market.
- An index is a mathematical construct, so it may not be invested in directly.
- Many mutual funds and exchange-traded funds attempt to "track" an index.
- A 'world' or 'global' stock market index includes (typically large) companies without regard for where they are domiciled or traded.
- A 'national' index represents the performance of the stock market of a given nation—and by proxy, reflects investor sentiment on the state of its economy.
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- The bar chart in Figure 2 shows the percent increases in the Dow Jones, Standard and Poor 500 (S & P), and Nasdaq stock indexes from May 24th 2000 to May 24th 2001.
- Figure 3, for example, shows the percent increase in the Consumer Price Index (CPI) over four three-month periods.
- Percent increase in three stock indexes from May 24th 2000 to May 24th 2001.
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- Several financial institutions offer futures and options that are based on a market index, such as the Dow Jones Industrial Average and S&P 500.
- For example, the Chicago Board of Options Exchange (CBOE) offers options on the Dow Jones Industrial Average, which it calls DJX.
- For example, a fund manager could buy 1,000 shares each of every company listed in the Dow Jones Industrial Average and let investors buy into the fund.
- Instead, the financial companies base the stock market index on a computed stock market index and settle accounts in cash.
- The Nikkei stock index fluctuated around 20,000 points in 1995.
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- Financial analysts compile market indices that measure broad movements in a financial market.Most popular and the oldest stock market index used today is the Dow Jones Industrial Averages, otherwise known simply as the "Dow" or "the industrials. " The Wall Street Journal invented the Dow in 1882, and it calculates the Dow by a weighted average of 30 representative stocks of New York Stock Exchange.The Dow includes Coca-Cola, IBM, Proctor & Gamble, and Exxon.Analysts at the Wall Street Journal adjust the Dow for corporate mergers, corporate bankruptcies, and stock splits.Another popular market index is Standard and Poor's 500 (S&P 500).Standard & Poor's index includes 500 stocks that are listed on the Stock Market Exchange.We list the major stock exchanges in the world in Table 1 along with their market indices.
- Market indices provide two benefits.First, the market indices provide fast information.Financial analysts calculate a market index in seconds and distribute the index to investors instantly.Second, private companies calculate the market indices.Thus, government does not influence the numbers.
- Stock market crash became the prelude to the Great Depression.In 1929, the stock market crashed on October 24, October 28, and October 29.Afterwards, the unemployment rate peaked at 26% in the United States.Moreover, the New York Stock Exchange crashed on October 19, 1987.The Dow Jones fell by 508 points (or 27.8%) in one day, the largest loss in U.S. history.However, the United States did not enter a recession because the Federal Reserve came to the rescue, providing emergency loans to the financial institutions.Then the United States experienced a stock market crash in March 2000, which triggered the 2001 Recession.Many people call this the dot-com crash because stock value for many internet companies became worthless overnight.Finally, the U.S. experienced the 2007 Great Recession, which became the most severe recession since the Great Depression.Your author calls this the 2008 Financial Crisis, when pandemonium struck the financial world.
- When investors see the Dow Jones soaring, they invest more money into the stock market.As investors dump more money into the stock market, the stock prices continue rising.If investors see the stock market prices began falling, then they pull their money out of the stock market, and stock prices continue falling.If stockholders become afraid, they cash in all their stocks at once, causing thestock prices to plummet.Thus, the market moves in cycles, being driven by public's psychology and their expectations about future stock prices.
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- They can review a variety of indexes that measure the overall pace of market activity; the most notable of these is the Dow Jones Industrial Average (DJIA), which tracks 30 prominent stocks.
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- The Dow Jones Average is an average of the top, blue-chip stocks on the New York Stock Exchange.
- However, a market index shows a trend of stock prices.
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- Please explain the purpose of the Dow Jones Industrial Average and its usefulness.
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- The Dow Jones Industrial Average fell 22 percent to close at 1738.42, the largest one-day decline since 1914, eclipsing even the famous October 1929 market crash.
- It said it would restrict program trading whenever the Dow Jones Industrial Average rose or fell 50 points in a single day, and it created a "circuit-breaker" mechanism to halt all trading temporarily any time the DJIA dropped 250 points.
- In the early 1990s, the Dow Jones Industrial Average topped 3,000, and in 1999 it topped the 11,000 mark.
- Swings of more than 100 points a day occurred with increasing frequency, and the circuit-breaker mechanism was triggered on October 27, 1997, when the Dow Jones Industrial Average fell 554.26 points.
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- For example, the Dow Jones Industrial Average (DJIA) has generally followed an upward trend from 1900-2009 .
- The Dow Jones Industrial Average has generally increased overall since 1900, but its past performance is not a guarantee of future performance.