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The Dow Jones Index - How does it work?


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FiercePowahs
PostPosted: Fri Aug 31, 2007 3:57 am Post subject: The Dow Jones Index - How does it work? Reply with quote

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Can anyone tackle this one for me in laymans terms?

I see that the index is comprised of 30 components, however the trading prices of these components don't add up anywhere near the current 13000+ mark the dow is at.

What am I missing?

Thanks ahead of time
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Im Not Warren Buffett
PostPosted: Fri Aug 31, 2007 4:06 am Post subject: Reply with quote

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The difference you are missing is due to the "Dow Divisor."

http://www.djindexes.com/mdsidx/index.cfm?event=showAvgOverview&averageSelection=G
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FiercePowahs
PostPosted: Fri Aug 31, 2007 4:56 am Post subject: Reply with quote

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968.18 e$

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Excellent! Thank you for the link.
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bluehorse_native
PostPosted: Mon Oct 22, 2007 5:38 pm Post subject: real easy Reply with quote

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my little son did this and he knows how it works
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