Index Dow Jones Industrial Average

Index Dow Jones Industrial Average made its debut May 26, 1986. Then, it consisted of twelve shares. The first value index was 40.94 points. The Dow Jones called a "medium" because its value was calculated by adding the prices of its components and dividing them by the number of shares belonged to the index.

At the beginning of the Dow Jones index was calculated as the simple arithmetic mean of prices of shares of companies included in the listing. However, occasionally a distorted index values occurring due to the fact that the Dow Jones index is not weighted by the number of shares traded on the market. Therefore, from September 10, 1928 was adopted by the "method of calculating the permanent divider. And now, Dow Jones Industrial Average is calculated by adding up the prices listed in its shares at the close of the exchange and dividing this sum by the "constant divisor" which is adjusted for the value of stock splits and dividends in the form of shares, constituting over 10 per cent of the market value of the issue.

Currently, when calculating the index, Dow Jones Industrial Average takes the average share price 30 industrial corporations. The prefix is a tribute to the industrial history - many of the companies included in the index does not belong to this sector.

Based on market conditions, individual components of the DJIA index are changed from time to time. The selection of components for the replacement of the publishers produce The Wall Street Journal. If you change companies in the index, its value is adjusted. And the average value of the index does not change directly after the replacement of components.

Also calculated:

- Transport Index Dow Jones (The Dow Jones Transportation Average - DJTA) - index, which characterizes the movement of stock prices 20 transportation companies (airlines, rail and road companies)

- Municipal index Dow Jones (The Dow Jones Utility Average - DJUA) "responsible" for the 15 companies involved in gas - and electricity.
- Composite Index Dow Jones (The Dow Jones Composite Average - DJCA) is determined on the basis of the industrial, transportation and utilities indexes (65 companies).

The most weight is the indicator of industrial corporations. The index is calculated as the arithmetic mean the sum of the rates of capital shares, which represented shares of selected companies to calculate the time of their inclusion in the index. Composition of Dow Jones Industrial Average is not the same: the components of this index may vary depending on the position of the largest industrial corporations in the U.S. economy and the market.
The composition of the industrial index, Dow Jones: Alcoa, Allied Signal, American Express, AT & T, Bethlehem Steel, Boeing, Caterpillar, Chevron, Coca-Cola, Walt Disney, DuPont, Eastman Kodak, Exxon, General Electric, General Motors, Goodyear Tire, IBM, International Paper, McDonald `s, Merck, Minnesota Mining and Manufacturing, JP Morgan, Philip Morris, Procter & Gamble, Sears Roebuck, Texaco, Union Carbide, United Technologies, Westinghouse, Woolworth.

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