The concept of Dow Jones industrial average: Many of us are eager to invest in the stock market and trade in the stock exchange. The trading in the stock market requires lot of experience and exposure to the market. In order to access and predict the stock behavior, there exist various methods on which you can predict the market condition and value of some share. The Dow Jones industrial average is one among the method to predict the market behavior. With the aid of the Dow Jones industrial average method you can gauge the performance of the industrial sector of the United States stock market.Sponsored Links
The initiators: The concept of Dow Jones was initially framed by some of the reputed and eminent companies in the U.S. After assembling the framework of the Dow Jones concept was finalized by summing up the prices of the 30 companies’ stocks, with the product divided by the Dow Divisor or the number of component companies. Among the companies who have cane forward to formulate the Dow Jones method are , North American, Tennessee Coal & Iron, U.S. Leather (preferred), American Cotton Oil, American Sugar, American Tobacco, General Electric, Laclede Gas, National Lead and U.S. Rubber. Out of these twelve companies only one (General Electric, Chicago Gas, Distilling & Cattle Feeding,Sponsored Links
Present members: After the inception there has been a lot of changes in the members of the companies. Here are the list of current companies who are indexing the Dow Jones method: McDonald’s Corp., Merck & Co. Inc., Microsoft Corp., Pfizer Inc., Alcoa Inc., American Express Co., AT&T Inc., Bank of America Corp., Boeing Co., Caterpillar Inc, United Technologies Corp., Verizon Communications Inc., Wal-Mart Stores Inc. and Walt Disney Co, E.I. DuPont de Nemours & Co., Exxon Mobil Corp., General Electric Co., General Motors Corp, Johnson & Johnson, JPMorgan Chase & Co., Kraft Foods Inc. , , Procter & Gamble Co., Chevron Corp., Citigroup Inc., Coca-Cola Co., Hewlett-Packard Co., Home Depot Inc., Intel Corp., International Business Machines Corp.Sponsored Links
Application of the Dow Jones method:
Do you have the information on how many individual issues have advanced versus how many have declined in the stock market? Literarily this matters a lot for a successful treading. This statics will help you for a better prediction in the stock market. The Dow Jones method will let you know the statics of how many individual issues have advanced versus how many have declined. Apart from that it will also let you know about other various vital statistics of the stock market. The stock market is all about up and down and every day there will be fluctuation in the stock price. For investors it is almost impossible to track the price of each share. However with the Dow Jones method you can get the exact value of the share, its high and low trade price for the last 52 weeks and even more also. This will help you to invest in a profitable way.