What is the Dow compared to the 5 pages of other stocks in the newspaper?
The Dow Jones Industrial Average is a type of index. It is computed using the weighted average of a group of 30 blue chip stocks. Because of the wide diversity and well established nature of the companies that make up the Dow Jones, it is considered a fairly accurate depiction of general market trends. A very good history and explanation of the Dow directly from the company that created it is linked below.
The listing of other symbols are either other indexes, funds, stocks or bonds.
Indexes use a formula that tracks a specific group of stocks. They are tools designed to indicate a general view of the market as a whole or a specific segment of the market. The indexes do not trade, they only report the overall change in a group of stocks.
Funds are companies that buy large pools of individual securities. The funds then sell bits of itself to investors. This is an easy way for smaller investors to gain an interest in the underlying securities without having to devote a lot of money to buy the individual securities themselves.
Stocks represent the equity interest in companies. Equity interest is another way to say "ownership". If you have an equity interest, then you own a percentage of the company. Each share of stock represents a specified percentage of a company.
Bonds are debt securities. They are kind of like an IOU issued by a company or government. Bonds usually make interest payments to the investors at specified times during the duration of the bond, and then typically return the principal (the amount borrowed) when the bond becomes due.
Investopedia is a good source of basic market information. It also does a very good job of explaining financial terms in plain English.
How is the Dow Jones number calculated or any other exchange?
The Dow Jones Industrial Average (DJIA) is the most familiar stock market number that is reported. It is an average based on 30 industrial companies. The companies change from time to time. They add up the share price of these 30 companies and multiply by a factor that accounts for stock splits and changes in the selection of the companies over time.
Other averages use other methods. The Standard & Poors 500 (S&P 500) takes the 500 largest companies. S&P uses some method to choose how many shares of each company. The stock price of each is multiplied by the number of shares of each and the result is added up.
What does the latest plunge in the Dow mean for the economy?
it means the consumer debt industry is producing some major asset inflation. so is this the beginning or the end? are poor African Americans, the demographic these loans were predominately targeted at, just the first to go? i tend to think the whole house of odious debt cards is about to fall sooner or later. sub prime loans are just the most egregious examples
Shrimp wrapped w/snowpeas (dow miow)
20 uncooked large shrimp, peeled, deveined
1 tablespoon minced fresh ginger
2 teaspoons vegetable oil
1 large garlic clove, pressed
1/2 teaspoon Chinese five-spice powder
20 large snow peas, stringed
1 teaspoon oriental sesame oil
1/2 teaspoon sesame seeds, toasted
2 tablespoons reduced-sodium soy sauce
20 small wooden skewers or toothpicks
Combine shrimp, ginger, vegetable oil, garlic and five-spice powder in medium bowl; toss to blend. Cover and refrigerate at least 1 hour and up to 4 hours. Bring medium pot of salted water to boil. Add snow peas; cook just until crisp-tender, about 45 seconds.
Drain. Rinse with cold water. Drain; pat dry. Transfer to bowl. Drizzle sesame oil and sesame seeds over; toss to coat. Set aside.
Heat large nonstick skillet over medium-high heat. Add shrimp mixture and sauti 3 minutes. Add soy sauce; stir until shrimp are just opaque in center and liquid evaporates, about 1 minute. Transfer to plate and cool completely.
Wrap 1 snow pea lengthwise around each shrimp from head to tail. Secure with skewers. (Can be prepared 6 hours ahead. Cover and refrigerate.) Serve slightly chilled or at room temperature.
3 chicken breasts, boned and skinned
1/2 lb snow peas (dow miow)
1/2 lb Chinese mushrooms
4 green onions
2 cups bamboo shoots, drained
1 cup chicken broth
1/4 cup soy sauce
2 tb. cornstarch
1/2 ts sugar
1/2 ts salt
4 tb. peanut oil
1 pack cashew nuts (about 4-oz)
Slice breast horizontally into very thin slices and cut into squares.
Place on tray. Prepare vegetables, removing ends and strings from pea pods, slicing mushrooms, green part of onions, and bamboo shoots. Add to tray. Mix soy sauce, cornstarch, sugar, and salt.
Heat 1 tbls of oil in skillet over moderate heat, add all the nuts, and stir fry 1 min. shaking the pan, toasting the nuts lightly.
Remove and reserve. Pour remaining oil in pan, fry chicken quickly,
turning often until it looks like opaque.
Lower heat to low. Add pea pods, mushrooms, and broth. Cover and cook until thickened, stirring constantly. Simmer uncovered a bit more and add green onions and nuts and serve immediately.
What the worse that can happen if the Dow keeps sinking lower and lower?
People get laid-off from work. There is less money to spend. Business produces fewer products. Then at some point, the whole process reverses and "pent-up" demand takes over. Cars wear out at some point and must be replaced..
What was the original formula to calculate the Dow Jones Industrials Average? What is the current formula?
The original formula was to add up the price of one share of each stock and divide by the number of stocks in the index. Originally there were 11 stocks. Now the Dow uses a divisor to account for stock splits and dividends. The current divisor is 0.132319125. A better way to assess the overall market is probably the S&P 500. Its a market capitalization weighted average.
How much has the Dow Jones Industrial Average grown during the Clinton and Bush Administrations?
Here is your answer:
Under Clinton: 2 January 1993 to 2 January 2001
The market rose from 3,435.11 to 9,878.78
Under Bush the market began at approximately
9,878.78 and closed yesterday 19 November 2008 at 7,997.27
While the market did reach a high under bush of somewhere 14,000 the over spending habits of americans and greed on wall street has seen the market collapse.
We will see further decline in the next year or two perhaps 3 years. There is currently no end in sight to the decline.
Under the Clinton years the policies laid in place enabled our economy to grow dramatically. However, the deregulation under the clinton administration in it's last 2 years helped to create this mess we are currently in.
When one relaxes regulations and oversight in the financial industry greed takes over and the end result is what we are seeing now.
Blame for this financial meltdown can be laid upon everyone in the country who spent beyond their means.