Difference Between Ap And Dow Jones Industrial Average

Now that the three weeks have ended my final earnings is negative $392. 72. I lost money from the past three weeks from the stock market project. Honestly, I was not surprised of my results. I did not take the time to research into my chosen stocks. Comparing to the Dow Jones Industrial Average I don't come nearly close to it. The Dow Jones is known to range from $17,000. My earnings is negative compared to the positive of the Dow Jones. This has taught me something if I possibly invest in the stock market in the future.

When investing in a company, the goal is to buy shares at a low price and then sell them at a higher price. Individual stocks may go up or down independent of how “The Market” is doing overall. Stock market indices such as the Dow Jones Average, the NASDAQ, and the Standard and Poors 500 report how “The Market” is doing “on average.” To check

In this stage, the risky required return (rm), the same as market return, should be calculated. Stock market index is an approach to evaluate the value of stock market and S&P/ASX 200 is the most significant stock market index which tracks the performance of two hundred big Australian corporations (Australia Stock Market (S&P/ASX 200) 2013). Currently, S&P/ASX 200 is a primary share market index in Australia which replaced the All Ordinaries in April 2000 and has become the benchmark for investment for the Australian Securities Exchange (ASX) (ASX 200 2013). Therefore, S&P/ASX 200 is the best indicator of the market return and used to determine the market return.

the world. " The Big Three" hold nearly 75% of the market and produce over 8

* The S&P 500 is a free-float capitalization-weighted index published since 1957 of the prices of 500 large-cap common stocks actively traded in the United States.

19. Each stock’s rate of return in a given year consists of a dividend yield (which might be zero) plus a capital gains yield (which could be positive, negative, or zero). Such returns are calculated for all the stocks in the S&P 500. A weighted average of those returns, using each stock’s total market value, is then calculated, and that average return is often used as an indicator of the “return on the market.”

3. An analysis of stock market conditions including recent returns on stock market indexes and average valuation ratios such as P/E ratios of stock market indexes.

Constantly growing firm with increasing revenue (15.5% in 2005), net profit, total assets and high returns on equity (5.1% in 2005)

The stock that I have analyzed is Apple (AAPPL), which it falls under the technology sector and trades under the NASDAQ. This sector holds the biggest companies around the world. A lot of these companies are well known such as: Amazon, Google, LinkedIn, and etc. The technology sector is an undeniably investment opportunity for every investor around the world. Lets face it technology keeps improving and we have only seen the beginning of it. These companies, such as Apple, are associated with constant innovation and invention. Our modern economy relies upon the technology sector to improve quality, productivity, and profitability.

By comparing the above companies, Boeing is a very strong and stable company. Large cap companies have market caps of $5 billion or more. This category includes the big blue chip companies that are household names to most investors. Although investors in stocks in any market capitalization category incur risk, surprises have traditionally been less likely among these blue chip companies (Ross, 2011). Their high return on equity measures how much the shareholders earned for their investment in the company.

When viewing this project I began to think about big names in industries that were not the same. My first thought was Disney because it has built such a large empire worldwide. It met my longevity requirement because the evidence of its first split in 1967, though I could not find when it actually joined in the stock market. I was intrigued by how it would react to the economy over the coming month as everyone heads into their houses to hide for the winter. Would it drop or rise? The answer I got was it would rise.

Delta’s stock is greater than the S&P 500 index. It has been increasing from 2011 to 2015 closets to 4.60. Comparing with the competitors, the companies keep increasing their stock prices which indicates a steady source of income for investors. Delta comes second after American because American has been increasing their stock prices.

The Dow Jones Industrial Average down 1.21% to 20,725.19, the S&P 500 had lost 1.16% to 2,372.8 and the Nasdaq Composite dropped 1.75% to 6,061.77.

The figure above shows Apple Inc, the Market cap lead, and Dell, the Market cap last, corporations and their market share compared to the industry and the technology sector. As you can see above Apple Inc. is almost as close to the market cap for the Personal Computers industry. Although, it does have a smaller P/E ratio compared to the industry it still is the highest among the top leaders within the industry. Compared to the industry Apple’s does not have a debt to equity ratio, which is excellent. Apple’s net profit is also the highest within the top competitors and the industry. The price to free cash flow exceeds the industry as well as the technology sector.

tock’s exhibit they had less volatility, it wasn’t enough volatility to be over the market. Therefore all of the individual stocks are more volatile than the market as a whole. The diversification embodied in the S&P 500 reduces its volatility.