The Dow Jones Industrial Average. What is the Dow Jones Industrial Average?  The Dow Jones Industrial Average tracks the stocks of 30 of the largest.

Slides:



Advertisements
Similar presentations
Name: Date: Introduction to Stock Market
Advertisements

The Dow Jones Industrial Average Index. Brief History The Dow Jones Index was founded by Edward Davis Jones, Charles Henry Dow and Charles Milford Bergstresser.
P.V. VISWANATH FOR A FIRST COURSE IN INVESTMENTS.
MARKETS COMPANIES INDEXES OBJECTIVES FUNDAMENTALS.
Vicentiu Covrig 1 Equity Markets (chapter 2). Vicentiu Covrig 2 Equity Markets New York Stock Exchange - An Agency Auction Market  Market in which brokers.
The Dow Jones Industrial Average Index. Brief History Founders Edward Davis Charles Henry Charles Milford Jones Dow Bergstresser.
Stock Investing Basics Important Terminology Related to Stock Investing.
O EQUITY=OWNERSHIP OF PART OF CORPORATION o STOCKHOLDER=PERSON WHO BUYS STOCK o PRICE OF STOCK =DETERMINED BY HOW MUCH INVESTORS WANT TO PAY VIDEO: WHAT.
Buying Stock Reading Stock Tables. Stock Indexes  Standard & Poor's 500 Index  Contains the stocks of 500 U.S. corporations,  All of the stocks in.
Frequently Asked zHow Did the Stock Market Perform Yesterday? zDown 1.77%? zDown 1.27%? zDown 1.64%?
Market Indices. What is an index? Remember: A stock market index is simply a basket of stocks that are followed by investors. There are four main indices.
Today: We’ll finish up some things from week #1.  Do a quick review of indices (aka indexes) and who uses them (besides us).  Build a spreadsheet of.
Stock Market Indexes If we want to know how the stock market did today, what should we look at? The Dow Jones Industrial Average? The S&P 500 Index? The.
Introduction to Investing Bull Market Bear Market = Buyers Market (Optimism) = Sellers Market (Pessimism)
MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 1 - Introduction to Technical Analysis This lecture.
2-1 Stock Market Indexes Importance/Uses People often use them to measure the “health” of stock market They provide the basis for some of the most popular.
Today (and continued next week Wednesday if we don’t finish all this today):  Turn in your signed syllabus last page.  Divide up the portfolio’s securities.
* Extra Credit* 100pts 50pts and 25 pts for the students that have the closest predictions for the Close of the DOW and/or the NASDAQ on June 10 th Thursday.
Stock Market Basics. WHAT IS A STOCK? A stock represents partial ownership of a corporation. When you buy shares of a stock, the company gives you a stock.
WHAT IS STOCK? Stock represents ownership in a corporation (unlike bonds, which represent debt) Stock, also called equity, is bought and sold in portions.
Introduction to Investing The Basics of Investing.
The Stock Market. Shares A portion of a stock—aka. Equities (claims of ownership in corporations) Purpose: Corps. Raise $ to start, run and expand.
Dow Jones Industrial Average Event 12 Deakin University CRICOS Provider Code: 00113B.
Foundations of Business
Mario Moreno MA1N0225. A stock exchange based in New York City, which is considered the largest equities-based exchange in the world based on total market.
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. CHAPTER 17 The Stock Market.
Are Your Investments Working The Way You Expected?
Introduction to the Stock Market The Basics of Stock Investing.
Concepts of the Stock Market Chapter What is a Stock?  A stock is a share of ownership in a company  When you buy a stock, you are paying for.
Lecture Presentation Software to accompany Investment Analysis and Portfolio Management Seventh Edition by Frank K. Reilly & Keith C. Brown Chapter 5.
Stock Market Introduction to the Stock Market. What is a stock? Partial ownership in a business – Dividends = Profits paid out to stock holders four times.
12/18/09 BR- Describe how “buying on margin” or “short selling” can be a risky, but profitable move. Today: - Explain buying on margin and short selling.
Chapter 4 Security Market Indicator Series As benchmarks to evaluate the performance of professional money managers 2. To create and monitor an.
Ross Finance Club Weekly Breakout Sales, Trading, and Research December 5, 2004 Zachary Emig MBA Class of 2005.
Security Market Indexes Security Market Indexes: A statistical measure of change in a securities market. An index is an imaginary portfolio of securities.
Standard 3: Understand Economic Systems EQ 3.03 Explain the Stock Market.
By: Bradley Sarasin. Stock – An Overview Companies will sometimes issue stock as a way of raising money By purchasing stock, investors become entitled.
Stock Market Indexes How Did the Stock Market Perform Today? What should we look at? Dow Jones Industrial Average? S&P 500? Nasdaq Composite?
What are Stocks?  A stock represents a share in the ownership of a company.  Ownership of stock is represented by a stock certificate.  These days,
The Stock Market Miss Varee Period 0, 1, and 2 AP Economics.
STOCKS and MUTUAL FUNDS WHAT YOU SHOULD KNOW. What are stocks? Shares of ownership of a company If a company has 100 shares outstanding and you own 10.
THE STOCK MARKET. THE FINANCIAL SYSTEM The financial system is a network of institutions which connect investors with borrowers. Institutions in the financial.
Stock Market Index.
Managing Money 4.
Ms. Palmer Pollard HS THE STOCK MARKET. Definitions  Stock: A share (or a piece) of a public company.  Stock Market: Where the actual buying and selling.
2008 Stock Market Crash. Only time will tell the full story of the stock market crash of 2008, but on Monday October 6, the stock market would start a.
Stock Market Valuation Valuing Individual Companies.
Stock Market Indexes If we want to know how the stock market did today, what should we look at? The Dow Jones Industrial Average? The S&P 500 Index? The.
The Stock Market Rough Draft Stock Market Noah Glusman.
Stock is Ownership in a company Think about this…. Wal-Mart began as a single-store business in Arkansas Apple computers began when founders Steve Jobs.
Some Very Basic Info on Corporations and Stocks Part III Mr. Leavins, BCHS.
Stock Market. General Terms Earnings per share: Amt of profit each share is entitled Going Public: Company plans to sell stock Share: investor’s ownership.
The Basics of Investing Stocks, Bonds & Cash Accounts.
Stock Market Indexes If we want to know how the stock market did today, what should we look at? The Dow Jones Industrial Average? The S&P 500 Index? The.
G1 © Family Economics & Financial Education – Revised November 2004 – Investing Unit – Language of the Stock Market Funded by a grant from Take.
DOW JONES INDUSTRIAL AVERAGE CORPORATION PROFILES DOW JONES INDUSTRIAL AVERAGE DJIA LINK DOW JONES INDUSTRIAL AVERAGE DJIA LINK NAME TEACHER DATE NAME,
Stocks 2. Buying and Selling  Takes place on stock exchanges  By computer  Public must use licensed broker or online service  Largest Exchanges 
INDEX. PHASE 1 DisneyYes AT&TNo Apple Yes HondaNo VerizonYes.
 Stock- represent ownership in a corporation  Shares- portions of stock Purpose??... Raise money to start or expand a business.
1 20 pt 30 pt 40 pt 50 pt 10 pt 20 pt 30 pt 40 pt 50 pt 10 pt 20 pt 30 pt 40 pt 50 pt 10 pt 20 pt 30 pt 40 pt 50 pt 10 pt 20 pt 30 pt 40 pt 50 pt 10 pt.
Economics 101 Class #4 Hand Out:. Investing Advice ? What will you do / Who will you use ? -Full Service Stockbroker: +Understands markets generally,
STOCK MARKET. INVESTMENT  Definition- act of redirecting resources from being consumed today so they may create benefits in the future.
Introduction to the Stock Market
Wrapping Up the Unit: The budget & balancing it, stock market, Dow Jones A budget is a plan for spending & saving, based on one’s income & estimated expenses.
MAKING MONEY! Get Rich Tips!.
Bell Ringer List as many things that come to mind when you hear the words “stock market” or “stocks.”
Index vs. Exchange Notes #3.
Stock Market Indexes If we want to know how the stock market did today, what should we look at? The Dow Jones Industrial Average? The S&P 500 Index? The.
What is a “bull market”? What is a “bear market”?
Stock Market Indexes If we want to know how the stock market did today, what should we look at? The Dow Jones Industrial Average? The S&P 500 Index? The.
Presentation transcript:

The Dow Jones Industrial Average

What is the Dow Jones Industrial Average?  The Dow Jones Industrial Average tracks the stocks of 30 of the largest and most widely held companies in the United States.  It is considered by many financial analysts to be the most important world stock indicator.

Some of these companies include:  Wal-Mart  McDonald’s  Coca-Cola  Microsoft  Home Depot  Exxon-Mobil  Walt Disney  Apple

Dow Jones Average

How is the average calculated?  The DJIA is calculated by adding the sum stock values of the 30 companies listed in the index and dividing the sum by an established divisor.  The current divisor is  Because the divisor is less than one it actually serves as a multiplier.

Historic High  The DJIA reached an historic high on October 9,  It closed at 14,164.

The Dow Today  The DJIA was at 12, as of the closing bell yesterday.

History of the Dow Jones  We are going to watch a video that talks about the origins of the Dow Jones Industrial Average and provides an economic history of the nation from the late 1800’s until the mid-1990’s.  After the video, we will focus upon investing money.