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Q: what is the dow on the nyse and how is it caculacted ( Answered ,   4 Comments )
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 Subject: what is the dow on the nyse and how is it caculacted Category: Business and Money Asked by: hyram-ga List Price: \$2.00 Posted: 25 Jul 2002 12:37 PDT Expires: 24 Aug 2002 12:37 PDT Question ID: 45100
 `what is the dow on the nyse and what is the formula and the componets of the formula`
 Subject: Re: what is the dow on the nyse and how is it caculacted Answered By: netcrazy-ga on 25 Jul 2002 13:17 PDT Rated:
 ```Hello, Thanks for using Google. A very interesting question. There are many ways to measure how the market is doing. The most popular in the US are the Dow Jones Industrial Average (DJIA) and the S&P 500. There are many differences between these two indices - most notably, the number of firms. The Dow has only 30 firms whereas the SP 500 has 500 firms. Additionally, until late 1999, the Dow was made up of exclusively of stocks that trade on the NYSE. There are now two exceptions (Intel and Microsoft, who are both NASDAQ-firms. The major difference in the two indices is in how they are calculated. The Dow is a price weight index. The DJIA is designed to be a measure of the performance of the overall market. Thirty tried and true stocks make up the average. Here is a complete list of all the 30 companies that make the DJIA stocks. http://www.fool.com/FoolFAQ/FoolFAQ0014.htm Here is a page, which gives an example of how Dow is calculated. http://www.kiplinger.com/basics/investing/indexes/dowcalc.html Additional information from Dow site http://www.djindexes.com/jsp/avgOverview.jsp?averageSelection=I Something more on Dow http://www.kiplinger.com/basics/investing/indexes/dow.html One more example of how Dow is calculated. http://stocksquest.thinkquest.org/10326/market_simulation/dow_calculated.html Search term used: how dow is calculated: ://www.google.com/search?num=25&hl=en&lr=&ie=UTF-8&oe=utf-8&q=how+dow+is+calculated&btnG=Google+Search I hope this will help. Feel free to ask for clarification and if you are satisfied with my answer, then do rate it. Regards netcrazy``` Request for Answer Clarification by hyram-ga on 26 Jul 2002 06:19 PDT `how is the divisor of the dow calculated?` Clarification of Answer by netcrazy-ga on 26 Jul 2002 08:43 PDT ```Hello, The Dow was first computed using the Dow Divisor on September 10, 1928. Here is an explanation of how this divisor is calculated. "Assume that the prices of the 30 stocks summed to \$3,000. Then the 30-stock average price would be \$3,000 divided by 30, or 100.00. If one of the thirty stocks was quoted at \$200, but then split two-for- one so that its price fell to \$100, the sum of prices would be only \$2,900. To maintain the Average at its actual level of 100.00, the divisor of the Average is systematically altered. Since \$2,900 divided by 100.00 equals 29, the new divisor is set at 29, down from 30, in effect preserving the average price at \$100 (\$2,900 divided by 29 still equals 100.00)." Check out more about this: http://www.fool.com/ddow/historyofthedow6.htm Here is one more example of how this divisor is calculated: http://www.nni.nikkei.co.jp/FR/FEAT/plunge/plunge_com.html I hope this helps Regards, netcrazy```

 ```And I always thought Dow Jones was the name of a Welsh steam engine driver :) (for the Brits!)```
 ```You may find some more general info. here: http://www.howstuffworks.com/stock.htm```
 `You forgot about that other index, the "S" in "P" :) Boy would my dad kill me!`
 ```an article on the subject is available at: http://www.investopedia.com/articles/02/082702.asp```