Dow. Jones Industrials do exactly what they are supposed to do?

The Dow Jones is an arithmetic average stock price index. The Dow Jones is the oldest stock index in the world, and its full name is Stock Price Average. It is possible that what is commonly referred to as the Dow Jones Indexes refers to the first of the four groups of the Dow Jones Indexes, the Dow Jones Industrial Average (Dow Jones Industrial Average). The Dow Jones was first compiled in 1884 by Charles Dow, the founder of Dow Jones & Company. Its initial Dow Jones stock price average index is based on 11 kinds of representative of the railroad company's stock, using the arithmetic average method of calculation and compilation, published in the Charles Dow's own editorial publication of the "Daily Newsletter". The formula is: Stock Price Average = Sum of prices of selected stocks / Number of selected stocks The index is intended to reflect the general trend of the U.S. stock market and covers a wide range of industries, including financial, technology, entertainment, and retail. The Dow Jones Industrial Average is currently maintained by the editorial board of The Wall Street Journal, and the criteria for selecting its constituents include that the constituent companies are consistently growing, large, reputable, representative of the industry, and sought after by most investors. Currently, the 30 constituents of the Dow Jones Industrial Average are representative of blue chip stocks in the United States. This mysterious index of the slightest change, bring hundreds of millions of people panic or ecstasy, it is no longer an ordinary financial indicators, but the world's financial culture code. And what is the Dow Jones Index? Charles Henry Dow, a small farmer who only read elementary school, relied on self-education to become an outstanding financial journalist. Edward Davis Jones, a graduate of Brown University, as grumpy as his red beard suggests. Charles Milford Bergstresser, who lost his chance to be immortalized in history because his last name was too long. The Dow Jones, or Dow Jones Stock Price Average, is the most influential and widely used stock price index in the world. It is listed on the New York Stock Exchange as a representative part of the company's stock as the object of compilation, by four kinds of average stock price indexes are composed of: ① to 30 well-known industrial companies as the object of compilation of the Dow Jones Industrial Stock Price Average Index; ② to 20 well-known transportation companies as the object of the compilation of the Dow Jones Transportation Stock Price Average Index; ③ to 6 well-known utility companies as the object of compilation of the Dow Jones Stock Price Average Index; ③ to 6 well-known utility companies as the object of compilation of the Dow Jones Stock Price Average Index; the Dow Jones Stock Price Average Index; the Dow Jones Stock Price Average Index. (ii) Dow Jones Transportation Average Index compiled from the stocks of 20 prominent transportation companies; (iii) Dow Jones Utilities Average Index compiled from the stocks of 6 prominent utility companies; (iv) Dow Jones Composite Average Index compiled from the stocks of 56 companies covered by the above three stock price averages. Among the four Dow Jones stock price indices, the Dow Jones Industrial Average Index is the most famous, which is widely reported by the mass media and quoted as a representative of the Dow Jones Indexes. The Dow Jones Indexes are compiled and published by the Dow Jones & Company, a U.S. newspaper conglomerate, and appear in its subsidiary, The Wall Street Journal. History of the first published Dow Jones index was on July 3, 1884, when the sample of the index includes 11 stocks, by the Dow Jones company, one of the founders of the Wall Street Journal, the first editor of Charles Henry Dow (Charles Henry Dow l851-1902) compiled. 1928 October 1, its sample of stocks increased to 30 kinds and maintained to date, but The companies in the sample have undergone many adjustments. The Dow Jones is an arithmetic average stock price index. Since 1897, the Dow Jones Stock Price Average has been divided into two categories: Industrial and Transportation, with the Industrial Stock Price Average including 12 stocks and the Transportation Stock Price Average including 20 stocks, and has been published in The Wall Street Journal, published by Dow Jones & Company. In 1929, the Dow Jones Stock Price Average added the Utilities category, bringing the number of stocks included to 65, and it continues to this day. The current Dow Jones Stock Price Average Index is based on October 1, 1928 as the base period, because the average Dow Jones stock price at the close of this day happened to be about $100, so it is set as the base date. And later stock prices with the base period compared to calculate the percentage, it becomes the period of the voting price index, so now the stock index is commonly used to do the unit of points, and the stock index every point of the rise or fall is relative to the base date of the rise or fall of the percentage. Dow Jones stock price average index was initially calculated by simple arithmetic average method, when encountering stock ex-rights and ex-dividends, the stock index will occur discontinuous phenomenon. 1928 after the Dow Jones stock price average was changed to a new method of calculation, that is, in the counting of the stock ex-rights or ex-dividends when the use of connecting technology, in order to ensure that the continuity of the stock index, which led to the refinement of the stock index and gradually spread to the whole world. [edit]Classification of Dow Jones indices - Dow Jones Biotechnology Segment Indexes - Dow Jones Healthcare Providers Segment Indexes - Dow Jones Medical Products Segment Indexes - Dow Jones Pharmaceuticals Segment Indexes - Dow Jones Stoxx 50 - Dow Jones Global Equity Indexes However, it is now commonly cited as the first group, the Dow Jones Industrial Average. [edit]Dow Jones Index Groupings Currently, the Dow Jones Stock Price Average Indexes *** are divided into four groups: The first group is the Industrial Stock Price Average. It consists of 30 kinds of representative of large industrial and commercial companies, and with the economic development and become larger, roughly reflecting the whole of the United States industrial and commercial stock price level, which is usually quoted by the Dow Jones Industrial Average. The second group is the transportation industry stock price average index. It includes the stocks of 20 representative transportation companies, namely, 8 railroad carriers, 8 airlines and 4 highway freight companies. The third group is the average index of utility stock prices, which is made up of the stocks of 15 gas and electric companies representing U.S. utilities. The fourth group is the average price composite index. It is a composite index that combines 65 stocks from the first three groups of stock price averages, and this group of composite indexes provides a direct picture of stock market conditions for superior stocks though. Of the four Dow Jones stock price indices, the Dow Jones Industrial Stock Price Average is the best known, and it is widely reported in the mass media and quoted as a representative of the Dow Jones indices. The Dow Jones Indexes are compiled and published by the Dow Jones Company, a U.S. newspaper conglomerate, in its Wall Street Journal. History of the first published Dow Jones index is in July 3, 1884, the index sample at that time, including 11 kinds of stocks, by the Dow Jones company, one of the founders of the Wall Street Journal, the first editor of Charles Henry Dow (Charles Henry Dow l851-1902). 1928 October 1, its sample stock increased to 30 kinds and maintained to date Since October 1, 1928, its sample stocks have increased to 30 and remain so today, but the companies included in the sample stocks have undergone several adjustments. [edit this paragraph] Dow Jones index significance Dow Jones stock price average index is currently the world's most influential, the most authoritative stock price index, one of the reasons is that the Dow Jones stock price average index of stocks are representative of the stock, these stocks are issued by the company is the industry has an important impact on the famous companies, its stock market for the world stock market attention, investors are extremely important. The stock quotes of these companies are highly regarded by the world's stock markets and valued by investors in all countries. In order to maintain this characteristic, the Dow Jones company compiled its average stock price index of stocks selected often be adjusted, with more representative of the company's stock to replace those who have lost the representative of the company's stock with a dynamic. Since 1928, only for the calculation of the Dow Jones industrial stock price average index of 30 kinds of industrial and commercial companies, has been replaced 30 times, almost every two years there will be a new company's stock to replace the old company's stock. The second reason is that the Wall Street Journal, the news vehicle that publishes the Dow Jones Stock Price Average, is the most influential newspaper in the world of finance. The Journal reports in detail every day on its hourly calculation of the average index of the sampled stocks, the percentage change, the amount of each sampled stock traded, etc., and pays attention to the correction of the average index of stock prices after the stock split. The Dow Jones Stock Price Average is published every half hour during New York stock exchange business hours. The third reason is that this average stock price index has never been discontinued since the compilation, can be used to compare the stock market and economic development in different periods, and become one of the most sensitive stock price average indexes reflecting the changes in the U.S. stock market, is to observe the market dynamics and engage in the main reference for stock investment. However, because the Dow Jones Stock Price Index is a constituent index, which includes only a very small part of the more than 2,500 listed companies, and most of them are popular stocks, and the rapid development in recent years will not be the service industry and the financial industry companies are included, so its representativeness has also been subjected to people's questions and criticisms. Starting from May 25, 1996, the Dow Jones China Stock Index was also compiled for China's stock market. As of April 1, 1998, Shanghai and Shenzhen *** there are 88 stocks as its constituents were selected, so it is called the Dow Jones China 88 stock index. Usually said the Dow Jones index is referred to the Dow Jones Industrial Average Price Index, which is a representative of the strong, wide range of applications, the role of the outstanding stock price index. Dow Jones 30 kinds of industrial stocks average price index in May 26, 1896 came out. [edit]Dow Jones China Indexes Classification NEW YORK, March 17, 2008 - Dow Jones & Company's Indexes Division today announced changes to the constituents of selected indexes in the Dow Jones China Indexes series. Effective March 24, 2008, changes will be made to the constituents of the Dow Jones China 88 Index (Dow China 88), the Dow Jones China Overseas 50 Index, the Dow Jones China Index (Dow China), the Dow Jones Shanghai Index (Dow Shanghai), the Dow Jones Shenzhen Index (Dow Shenzhen), and the Dow Jones CBN China 600 Index (DJ CBN China 600), which will track the entire Dow Jones China Index family. As a result of this change, the Dow China 88, which tracks 88 of the largest and most liquid stocks in the Shanghai and Shenzhen markets, will have 8 new constituents, and the market capitalization of the constituents of the indexes will represent approximately 44.52% of the total market capitalization of the Shanghai and Shenzhen A-share markets. After the adjustment, the number of Shanghai stocks in the index will increase from 63 to 67 and the number of Shenzhen stocks will decrease from 25 to 21. In terms of the outstanding market capitalization of the constituents of the Dow 88 Index, Shanghai stocks accounted for 82.43% and Shenzhen stocks accounted for 17.57%. Constituent changes in the Dow 88 Index are the result of a semi-annual review of the index. In order to provide Chinese and global investors with a tool to accurately track the Chinese stock market, the Dow Jones Indexes series utilizes the same rigorous criteria as the Dow Jones Global Indexes. The Dow Jones Indexes use outstanding shares for constituent selection and index compilation, excluding state-owned shares and unlisted employee shares, in order to provide investors with an accurately representative index that reflects the actual number of shares available for trading. The Dow Jones indexes do not take into account large holdings when calculating the market capitalization of outstanding stocks for constituent stock selection.