It's very simple to mix the Dow Jones & Dow Jones Industrial Average, which is often referred to as Dow. Dow is one of the most stock indexes Show in order to contain the world giants such as General Electric, Microsft and, etc ... The Dow Jones (The Company) is one of the largest financial and business news companies in the world.
The company was founded in 1896 by three persons, Charles Dow, Edward Jones & Charles Bergstrsr. In 1889 he founded The Wall Street Journal newspaper, which is now considered one of the most influential financial publications and reliability. In this article we will speak in detail on the Dow Jones index.
Mostly we hear on social networking sites and on TV that the market is a draw today. Generally, this mean in general the Dow. The Dow industrial average was referred as DJIA is one of the oldest and most popular indicators in the stocks market. It is used to measure the daily price movements of the 30 largest American companies. In addition to focus in the general market conditions on a large view.
Dow Jones industrial average is influenced by changes in the stock prices only, this means that the price of the stock higher have a greater impact on the movements of the Dow Jones index. For example, if the index raised by 50 points, this means that the cost of buying the index contained of the 30 stock indexes has raised also US $ 50 for the cost of buying the stock itself comparing with last night, focusing on that the stock has split and dividends. In another meaning, those shares are worth more than they were the previous day. Over time, the Dow Jones industrial average has become an important measure of the economy.
The selection of the 30 companies that make up this index by editors of The Wall Street Journal newspaper, the parent company of Dow Jones. Editors keen on the selection of companies from various key sectors of the economy Bsttina sector utilities and transport. Today, the Dow Jones industrial average is the index, which tracks US stocks, which is a leader in the economy and listed on NASDAQ and the New York Stock Exchange. Over the years, companies have been changed in the index to ensure the health of the index measuring the current situation in the US economy. In fact, GE is one of the few companies that have survived in the formation of the index since its inception to now.
In addition to being one of the most US indices followers but of indicators that reflect American consumers trade and economic confidence. There is a close relationship between the index data and US manufacturing and employment. Let's take the example of the relationship between the index and the change in jobs outside the agricultural sector note that if the recent negative this will reflect negatively on the index, which means it difficult to sell it. On the other hand the improvement in manufacturing data means improvement in the economic situation and therefore improved US consumer confidence in the economy. This will reflect positively on consumers who tend in this case to buy the stock and stick to it.
Although there are many from the opposition about the health of the index, but it is still the most indicators followers to watch the stock market performance. Time is the greatest over the following Dow Guide as one of the most important indicators, to its presence in the market for more than a hundred years.
