finance
 






 

Question by  Joe67 (46)

How do they figure the Dow Jones Industrial Averages?

 
+6

Answer by  JohnC (131)

The Dow Jones Industrial Average is a composite index of 30 publicly traded stocks of large American companies. The index is calculated by summing the prices of all 30 stocks, then dividing by a divisor that accounts for stock splits and other changes to the companies that comprise the index.

 
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Answer by  waskasoo (471)

The Dow Jones Industrial Average is a composite of the stock prices of particular companies that have been chosen as representative. It is actually a small group of companies and other indexes have been developed that follow a much broader sampling of companies.

 
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