What is djia all about?
1 answersQuestion asked ( September 18, 2009 , Work )
I would like to know the history of djia, its applications and mode of operation, can that index still be used even today?
Answers to : djia...
Answer
Djia was created by wall street journal editor and Dow Jones and company co-founder Charles Dow. It is an index that shows how large publicly owned companies have traded during a standard trading session in the stock market. The index was meant to gauge the performance of the industrial sector in the American economy. It the second oldest market index after Dow Jones Transportation Average which was created by the same person. The industrial portion of the name is basically historical it has nothing much to do with traditional heavy industry. In order to compensate for the effects of stock splits and any other adjustments, the average is currently a scaled average. The value of the Dow is not the actual average of the prices of its component stocks. It can be used even today.
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