To calculate the DJIA, the current prices of the 30 stocks that make up the index are added and then divided by the Dow divisor, which is constantly modified. The IMA is composed of 10 stocks, which total $1,000 when their stock prices are added together.
How is the Dow Jones calculated?
The DJIA is calculated by adding up all the stock prices of its 30 components and dividing the sum by the divisor. Index divisors are commonly used in the case of a price-weighted stock market index, such as the DJIA, to generate a more manageable index value.
What makes up the Dow Jones average?
The 30 stocks which make up the Dow Jones Industrial Average are: 3M, American Express, Amgen, Apple, Boeing, Caterpillar, Chevron, Cisco Systems, Coca-Cola, Disney, Dow, Goldman Sachs, Home Depot, Honeywell, IBM, Intel, Johnson & Johnson, JP Morgan Chase, McDonalds, Merck, Microsoft, Nike, Procter & Gamble, ...
What is the Down Jones based on?
The most commonly quoted is the Dow Jones Industrial Average (DJIA), which is based on the prices of 30 industrial stocks.
What was the lowest Dow Jones in 2020?
The Dow Jones Industrial Average (DJIA) index dropped around 8,000 points in the four weeks from February 12 to March 11, 2020, but has since recovered to 34,584.88 points as of September 15, 2021.
What does the Dow mean in the stock market?
Dow Jones Industrial Average What Is the Dow? The Dow Jones Industrial Average is an indicator of how 30 large, U.S.-listed companies have traded during a standard trading session. 1. A stock market index is a mathematical construct that provides a single number for measurement of the overall stock market (or a selected portion of it).