Google

How Each Stock Affects the Dow’s Performance

Here's a quick illustration of how the Dow Jones Industrial Average is calculated.

Below is a table with all thirty stocks in the Dow Jones Industrial Average. The fourth column shows each stock's daily price change. The last column show's each stock's impact on the Dow's performance, which is found by dividing the price change by the divisor in the fifth column.

http://allfinancialmatters.com/wp-content/uploads/2008/10/calculatingdjia.gif

Now, before we get a bunch of comments telling us what a bad index the Dow is: I already know that! I just wanted to illustrate how the average is calculated, not critique the index itself.

 

No comments:

Google