The Dow Jones Industrial Average

There are millions of ways to make money in the world. Every day millions of people invest their money in the New York Stock Exchange (NYSE). On average, there are five trillion dollars in stocks traded daily (Picardo).This is one of the reasons America has the largest economy in the world. The stock market creates jobs for thousands of people and has done nothing but show a steady increase since the day it opened (Knight). Wall Street symbolizes the way America’s economy is a free market. The stock market affects almost everybody, not only in America but all over the planet.

The extracted data used includes monthly returns from January 1972 to July 2011. The assets are selected so that the portfolio contains the largest, most liquid, and most tradable assets. The choice of such a variety of assets across several markets was used in order to generate a large cross sectional dispersion in average return. It helped to reveal new factor exposure and define a general framework of the correlated value and momentum effects in various asset classes.

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

The Dow Jones Industrial Average is very significant in that it is used as a measure of how the economy is supposedly doing. If the DOW were to fall people believe that the US economy will fall. It includes multiple different types of industries, which is why it helps give a representation of how the market is doing. The DOW also helps to compare our market now to our markets in the past (Investopedia). It is also significant simply because of its history. The DOW dates back to 1897; making it an old yet reliable source. One last reason the DOW is widely significant is because it is constantly being refreshed. Its changes are broadcasted every half hour giving people a clear update on how it is doing (New York Times). The NASDAQ is also of

The Dow Jones Industrial Average (DJIA) is on the cusp of crossing 20,000 points. Let that sink in.

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.”

The Dow Jones Industrial Average (INDEX:DJIA) stock price has been fluctuating and has moved up from 16,384on September 18 to 17,910 on November 6. The Dow Jones Industrial Average (INDEX:DJIA) is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896. The DJIA typically has not only solid profits, but also create immense amounts of cash flow, much of which they turn around and return to investors. Through a combination of dividends and share buybacks, Dow companies demonstrate their commitment to

In 1929, the stock market was one of the most horrible days in the Wall Street history of the United States. Many called Black Tuesday the day that the market declined thirteen percent; others say it was a great stock market crash. Even when historians mention that the big Crash was not, the reason for the Great Depression they say that the cause was the Stock Market itself. Everything started in October 24, 1929 was the day the investors lose millions of dollars, in shares in a single day. This caused this manufacturing world to go down, soon after the Great Depression one of the major and one the last the longest exactly ten years from 1929 to 1939. What was the cause for this to happen history mentioned, that the market was

The Dow Jones is a stock index that includes thirty blue chip stocks, which are the superior public companies on the stock market. The Dow helps show how the stock market is fairing as a whole. It was invented by Charles Dow an American Journalist and one of his business partners Edward Jones who was a statistician in 1896. The thirty stocks on the Dow Jones Industrial Average are price weighted and trade on the New York Stock Exchange and NASDAQ. The Dow although very expansive in the data it shows is not always the best way to show how the economy and sometimes even the stock market is doing. But knowing how it became to be what is today and how it serves traders on the stock market is important information for anyone in the financial business field to know.

Three greater substances light up the strange and troubling money related issues for America from the alarming 2008 crash and its outcome. In any case: for U.S. budgetary and regard markets, there has beginning now on an extremely fundamental level been a full recuperation from the Great Recession. Key pointers of execution for these business sections the Dow30, S&P500, Russell 2000, NASDAQ, etc.–are all at higher obvious levels today than they were five years back. Undoubtedly, even in the wake of controlling for swelling, these markers are before where they were in mid-2008. For riches holders in these business parts, the dreadful dream is over-in any event for the present The story for the genuine economy-where unmistakable stock and

Within New York City, Wall Street is concentrated with most of United States’ financial industries. Through different movies, such as Leonardo DiCaprio’s Wolf of Wall Street and Charlie Sheen’s Wall Street accurately portray the heart of Wall Street: The New York Stock Exchange. The New York Stock Exchange began on May 17, 1792, the earliest record of organized securities trading. On that day, twenty-four brokers signed the Buttonwood Agreement, setting a floor commission rate of 0.25% charged to clients and give the signers the preference to other singers in the securities sales, thus eliminating the auctioneers. At the beginning, the earliest trades were mostly War Bonds used in the Revolutionary War, allowing the thirteen colonies to fund enough money to engage in war against the Britain. Thus, they began operated in 1793 at the Tontine Coffee House, built to serve as a meeting place for trading. However, issues such as corruption and manipulation of the market began to arise, causing the stockbrokers to instituted reforms and reorganized. As a result, on 1817, the stockbrokers under the Buttonwood Agreement began reforms such as restrictions on manipulative trading and prevention of leaking market information were enacted to make sure the trading market remain as a competitive market. In addition, they also renamed their broker organization as “New York Stock and Exchange Board”, in hopes to demonstrates their reform to the public. As time continues, the invention of

The historic average returns from 1950 to 1996 and from 1929 to 1996 are given In Exhibit 3. We chose the latter time period as we considered it would give us a more reliable estimate of the risk-free rate by discounting both the Second World War and the Great Depression. It is necessary to evaluate the expected length of the project and utilize a risk free rate applicable for the same time period. Ameritrade is investing $100 million dollars in technology, which is considered a long-term investment, in order to become the largest brokerage firm. We consider their

In his book, Capital Ideas: The Improbable Origins of Modern Wall Street, Peter L. Bernstein examines the innovative financial work of various academics that helped shape modern Wall Street. Bernstein sets out to show that Wall Street is in fact a fundamental and useful model to follow, rather than something to be feared. He points out that, “By combining the linkage between risk and reward with the combative nature of the free market, these academics brought new insights into what Wall Street is all about and devised new methods for investors to manage their capital.” (2) These impressive scholars have incorporated scientific measurement to the art of finance, forever

As indicated by the case study S&P 500 index was use as a measure of the total return for the stock market. Our standard deviation of the total return was used as a one measure of the risk of an individual stock. Also betas for individual stocks are determined by simple linear regression. The variables were: total return for the stock as the dependent variable and independent variable is the total return for the stock. Since the descriptive statistics were a lot, only the necessary data was selected (below table.)