Corporate Finance
ENOCH DADZIE MPIMWOOD
SCHOOL: COVENTRY UNIVERSITY
PROGRAM: MBA-FINANCE
STUDENT ID: COVBAF0513079
INTAKE: MAY 2013
COURSE ASSIGNMENT
Wood.noon@gmail.com
Contact: +233 244137533
The Dow Jones Industrial Average
Brief Introduction
The Dow Jones Industrial Average also called the, the Dow Jones Industrial, Dow, is a stock market index, and one of several indices created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow. It was founded on May 26, 1896, and is now owned by Dow Jones Indexes, which has its majority owned by the CME Group. The average is named after Dow and one of his business associates, statistician Edward Jones. It is an index that shows how 30 large publicly owned companies based in the United States have traded during a standard trading session in the stock market. It is the second oldest U.S. market index after the Dow Jones Transportation Average, which was also created by Dow.
The Industrial portion of the name is largely historical, as many of the modern 30 components have little or nothing to do with traditional heavy industry. The average is price-weighted, and to compensate for the effects of stock splits and other adjustments, it is currently a scaled average. The value of the Dow is not the actual average of the prices of its component stocks, but rather the sum of the component prices divided by a divisor, which changes whenever one of the component stocks has a stock split or stock dividend, so as to generate a consistent value for the index.
Along with the NASDAQ Composite, the S&P 500 Index, and the Russell 2000 Index, the Dow is among the most closely watched U.S. benchmark indices tracking targeted stock market activity. Equivalent indices, such as the FT 30, have largely become redundant in favour of more representative and neutral indicies, such as the S&P 100. Although Dow compiled the index to gauge the performance of the industrial sector within the American economy, the index 's performance
SCHOOL: COVENTRY UNIVERSITY
PROGRAM: MBA-FINANCE
STUDENT ID: COVBAF0513079
INTAKE: MAY 2013
COURSE ASSIGNMENT
Wood.noon@gmail.com
Contact: +233 244137533
The Dow Jones Industrial Average
Brief Introduction
The Dow Jones Industrial Average also called the, the Dow Jones Industrial, Dow, is a stock market index, and one of several indices created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow. It was founded on May 26, 1896, and is now owned by Dow Jones Indexes, which has its majority owned by the CME Group. The average is named after Dow and one of his business associates, statistician Edward Jones. It is an index that shows how 30 large publicly owned companies based in the United States have traded during a standard trading session in the stock market. It is the second oldest U.S. market index after the Dow Jones Transportation Average, which was also created by Dow.
The Industrial portion of the name is largely historical, as many of the modern 30 components have little or nothing to do with traditional heavy industry. The average is price-weighted, and to compensate for the effects of stock splits and other adjustments, it is currently a scaled average. The value of the Dow is not the actual average of the prices of its component stocks, but rather the sum of the component prices divided by a divisor, which changes whenever one of the component stocks has a stock split or stock dividend, so as to generate a consistent value for the index.
Along with the NASDAQ Composite, the S&P 500 Index, and the Russell 2000 Index, the Dow is among the most closely watched U.S. benchmark indices tracking targeted stock market activity. Equivalent indices, such as the FT 30, have largely become redundant in favour of more representative and neutral indicies, such as the S&P 100. Although Dow compiled the index to gauge the performance of the industrial sector within the American economy, the index 's performance
Links: Revenue (2012):120357.00 MRevenue Growth (1 yr):(-5.40%) Employees (2012):331,800 Employee Growth (1 yr):(-5.10%) Ex Dividend Date Jun. 10, 2013 Dividend Payment Date Jul By Alex Dumortier, CFA May 23, 2013 Following what seemed to be a relentless upward march in stock prices, we may be witnessing a shift in sentiment and the start of a period in which prices get reacquainted with downward volatility.