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Finance: What is the Advance Decline Ratio?
14 Views

What is the Advance Decline Ratio? The advance decline ratio is used to determine how the market performed on a given day. It does this by comparin...

Finance: What is a strong dollar?
3 Views

A strong dollar is one that has earned trust on an international scale. It reflects a reliable currency...at least, more reliable than that of othe...

Finance: What is the Dow Jones Industrial Average?
2710 Views

What is the Dow Jones Industrial Average? The Dow Jones Industrial Average is usually just called the Dow. It’s an average of 30 of the most well...

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Finance: What is the Dow Jones Industrial Average? 2710 Views


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Description:

What is the Dow Jones Industrial Average? The Dow Jones Industrial Average is usually just called the Dow. It’s an average of 30 of the most well-known and influential stocks. Using these stocks, it determines how the market is performing overall.

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Transcript

00:00

finance a la shmoop- what is the Dow Jones Industrial Average? well it's just

00:08

an index. it's a basket of 30 industrial stocks hence the catchy industrial word [list of the 30 stocks involved in the Dow]

00:14

in there and it was started in 1896 by Charles Dow and Edward Jones sort of the

00:18

Coke and Pepsi of stock averages in the day .worth noting is the fact that while

00:22

the Dow average is quoted often in the press it's not something that real Wall

00:27

Street traders really rely on that much as a market place holder anymore. why?

00:31

well because the Dow comprises only 30 stocks. it isn't really a broad market [Dow Jones in the trash]

00:37

representation, and you know the way the S&P 500 is the 500 is bigger than 30. Big

00:43

Brother has way more stocks and is thus way more liquid than the relatively

00:48

blippi set of 30 stocks that the Dow offers. over time the Dow has changed as

00:53

companies were bought and/or died and or just withered and became no longer

00:57

relevant. i.e. newspaper industry. which means that this thing has gone through

01:02

more faces than Kanye West .yeah. [Kanye West faces pictured]

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