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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.

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Presentation on theme: "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."— Presentation transcript:

1 The Dow Jones Industrial Average

2 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.

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

4 Dow Jones Average 1900-2010

5 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.01255527090  Because the divisor is less than one it actually serves as a multiplier.

6 Historic High  The DJIA reached an historic high on October 9, 2007.  It closed at 14,164.

7 The Dow Today  The DJIA was at 12,965.00 as of the closing bell yesterday.

8 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.


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