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Dow Jones Average

Dow Jones Average

Posted by Trader On March - 9 - 2010













There are four kinds of a Dow Jones Average: (Industrial Average, The Dow Jones Transportation Average, The Dow Jones Utility Average – DJUA, The Dow Jones Composite Average - DJCA).

The first one is the most well known and famous. The Dow Jones Industrial Average – DJIA is a simple average marker of stocks price movement of the world’s 30 largest industrial corporations. It’s the oldest and the most developed of all the fund market indexes. The “industrial” notion in the name of the average is just a historic name as nowadays many of the indexed companies do not belong to this sector.

It’s content is not changeable: the components may change depending on the positions of the largest industrial institutions of the US on the market, that is a rare happening nowadays. The index components constitute ca 15 – 20 % of the market cost of the stocks cost quoted on the New York Stock. This index is calculated by adding the prices of the indexed options and dividing the result for a specific denominator (corrected by the value of the market share and dividends in the form of stocks, constituting over 10% of the market price of the issues and substitution of merger and acquisitions components). The Dow Jones index is quoted in grades.

The Dow Jones Industrial Average list has been stable for long time with some companies indexed and suddenly leaving the rating and returning back afterwards. Only the General Electric is a static component of the rating.
DJIA list, containing Home Depot and SBC Communications was entered by Intel and Microsoft indexed by NASDAQ.

The current list of the DJIA is as follows:
Alcoa, American Express, AT&T, Boeing, Caterpillar, Citigroup, Coca-Cola, DuPont, Eastman Kodak, Exxon Mobil, General Electric, Home Depot, Honeywell International, Hewlett-Packard, IBM, Intel, International Paper, J.P. Morgan, Johnson & Johnson, McDonald's, Merck, Microsoft, Minnesota Mining & Manufacturing, Philip Morris, Procter & Gamble, SBC Communications, United Technologies, Wal-Mart Stores, Walt Disney.

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