“Genius is eternal patience”~~Michelangelo di Lodovico Buonarroti Simoni

images (2)Bulls Run~~

How DJIA is calculated~~FYI

Dow Jones Industrial Average Quotes

Stock Quotes for the 30 companies of the Dow Jones Average. From YahooSee profiles of the companies.

market capitalization

Web definitions
an estimation of the value of a business that is obtained by multiplying the number of shares outstanding by the current price of a share.

How The Dow Jones Industrial Average is Calculated

By JLP | December 4, 2006

Have you ever wondered HOW the Dow Jones Industrial Average is calculated? Here’s how!

According to the Dow Jones website, the index is calculated as follows:

The Dow Jones averages are unique in that they are price weighted rather than market capitalization weighted. Their component weightings are therefore affected only by changes in the stocks’ prices, in contrast with other indexes’ weightings that are affected by both price changes and changes in the number of shares outstanding.

When the averages were initially created, their values were calculated by simply adding up the component stocks’ prices and dividing by the number of components. Later, the practice of adjusting the divisor was initiated to smooth out the effects of stock splits and other corporate actions.

According to this weekend’s Barron’s, the current divisors are:

Dow Jones 30 Industrial Average: .12482483
Dow Jones 20 Transportation Average: .20882618
Dow Jones 15 Utilities Average: 1.4646169
Dow Jones 65 Composite Average: .77093357

So, to illustrate the calculation of the Dow Jones Industrial Average, look at the following table:

Ticker
Symbol

Current
Price
(12/02/2006)

AA

30.87

AIG

69.77

AXP

58.55

BA

89.55

C

49.38

CAT

61.19

DD

46.45

DIS

33.09

GE

35.28

GM

29.69

HD

38.97

HON

42.81

HPQ

39.44

IBM

91.25

INTC

20.93

JNJ

65.97

JPM

46.01

KO

46.57

MCD

42.08

MMM

79.98

MO

84

MRK

45.06

MSFT

29.12

PFE

27.86

PG

62.69

T

34

UTX

63.86

VZ

34.64

WMT

45.87

XOM

77.2

TOTAL OF ALL PRICES

1522.13

CURRENT DIVISOR

.12482483

DIVIDE TOTAL BY DIVISOR

12194.13

Pretty cool isn’t it?

You can also calculate how much a particular stock is going to affect the average. For instance, today Pfizer is down 3.19 (at this writing). To find out what kind of impact that particular stock will have on the Average, you simply divide the price change by the divisor (-3.19 ÷ .12482483 = -25.56). So, Pfizer is taking away 25.56 points from the Dow Jones Industrial Average so far today. Fortunately, the rest of the components are doing okay, as the Dow is up around 95 points right now.

Now go tell all your friends and family that JLP taught you something interesting today!

Other cool stuff:

History of the Dow Jones Industrial Average components (pdf)

The Chicago Board of Trade on the Dow Divisor.

– See more at: http://allfinancialmatters.com/2006/12/04/how-the-dow-jones-industrial-average-is-calculated/#sthash.zSDBle11.dpuf

.

Company

Stock Symbol

Primary Group

3M Co.

MMM

Diversified Industrials

Alcoa Inc.

AA

Aluminum

American Express Co.

AXP

Consumer Finance

AT&T

T

Telecommunications

Bank of America

 BAC

Banking

Boeing Co.

BA

Aerospace

Caterpillar Inc.

CAT

Commercial Vehicles & Trucks

Chevron

 CVX

 Integrated Oil and Gas

Cisco Systems

CSCO

Banks

Coca-Cola Co.

KO

Soft Drinks

E.I. DuPont de Nemours

DD

Commodity Chemicals

Exxon Mobil Corp.

XOM

Integrated Oil & Gas

General Electric Co.

GE

Diversified Industrials

Hewlett-Packard Co.

HPQ

Computer Hardware

Home Depot Inc.

HD

Home Improvement Retailers

Honeywell International Inc.

HON

Diversified Industrials

Intel Corp.

INTC

Semiconductors

International Business Machines Corp.

IBM

Computer Services

Johnson & Johnson

JNJ

Pharmaceuticals

JPMorgan Chase & Co.

JPM

Banks

Kraft Foods

 KFT

 Food

McDonald’s Corp.

MCD

Restaurants & Bars

Merck & Co. Inc.

MRK

Pharmaceuticals

Microsoft Corp.

MSFT

Software

Pfizer Inc.

PFE

Pharmaceuticals

Procter & Gamble Co.

PG

Nondurable Household Products

Travelers Corp.

TRV

Insurance

United Technologies Corp.

UTX

Aerospace

Verizon Communications Inc.

VZ

Fixed Line Telecommunications

Wal-Mart Stores Inc.

WMT

Broadline Retailers

Walt Disney Co.

DIS

Broadcasting & Entertainment

~~Κύριε ἐλέησον~~

Rejoice and Glad!!

Amen~~

Image

EX LIBRIS

John Daniel Begg

At

Washington, District of Columbia

United States

Tuesday, 2 Juillet, Anno Domini Nostri Iesu Christi, 2013

Image

John Daniel Begg

At

Washington DC

JOHN DANIEL BEGG
PRESIDENT
john daniel begg public affairs and speechwriting

4853 Sedgwick Street
North West
Washington, DC 20016-2323533
USA
Voice Telephone: 1-(202) 966-8029
Telefacsimile: 1-(202) 966-4125
Mobile Telephone: 1-(202) 557-1064

images (2)Bulls Run~

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