The one and only sector which is not represented by DJIA is the Utilities Sector. Rests of the companies are assigned from remaining sector found in Global Industry Classification System. DJIA is no longer a true proxy for the industrial sectors, but only the fraction of companies that make up the Dow are classified industrials. Dow Jones average indicator used to measure representative values of stock groupings in the stock market.A > DJIA consists of 30 large-cap Blue chip companies. On the other hand, in addition, in the case if $1 includes in the lower-price components of DJIA can also effects on the higher components of the average. For example, when the price of the lower-priced stock has decreased this decrease in price can be negated from the higher- priced stock. This means that on this stock market each company is assigned a weighting based on its stock price. DJIA has many excellent features, the one and only criticism of this Stock market is based on Price-Weighted Index system. Still it is the most Famous and popular stock market index. Currently, there are only 30 stocks in this company, but DJIA is not representing overall market performance. It regularly displayed a collection of both short term and long term stock market performance. This success made this index a successful index and this is the reason the large war in 1898 between the United States and Spanish empire had only had minor impact on this company.Ī > Dow Jones Industrial average is perhaps the most famous followed index. At that time most of the large industrials move to Dow Jones, this was a great success of Dow, which occurred early in his History. After this, the index of this company reached its peak which was 78.38 but, unfortunately, ends with very low level of 24.48. When this company published its index first time the level of the index was 62.76. This struggle continued and after all, Dow calculated its first average on May 26, 1986. Eventually, at the end of the year, this stock contains only 12 original Industrials. However, two main railroads were eliminated from DOW Index, which were Central Pacific Railroad and Central Railroad of New jersey. Every next day this exchange becomes larger and larger and after all, on 2 January 1886, the number of stocks represented in wall street journal becomes 12 to 14. In those days daily two pages financial news bulletin was posted on the wall street journal. In 1984, Charles Dow created his first stock market, which contains nine railroads and 2 industrial companies. This industrial average was first time calculated on and now it is the 2nd oldest stock market index in the United States. Nowadays the company is owned by S&P Dow Jones Indices. The value of divisor is one or less than one so that is why the value of the index is larger than the prices of the components.Ī > Dow Jones Industrial Average or DJIA was created by wall street journal editor and co-founder of company Dow Jones & company, Charles Dow. The purpose of this whole method is to generate the consistent value for the index. Changes in Divisor occurs whenever the some components of a stock has a stock split or stock dividend. These stock components are divided by a Divisor. The value of DOW is not the actual average of prices of stocks or components. The industry is currently Scaled average. About 30 components have little or nothing to do with traditional heavy industry. Industrial portion of Dow Jones Industrial Average is Historical. A > DJIA consists of 30 large-cap Blue chip companies.
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