The Dow Jones The Dow Jones Industrial AverageIndustrial Average

What is the Dow Jones What is the Dow Jones Industrial Average?Industrial Average? The Dow Jones Industrial Average tracks the The Dow Jones Industrial Average tracks the

stocks of 30 of the largest and most widely stocks of 30 of the largest and most widely held companies in the United States.held companies in the United States.

It is considered by many financial analysts to It is considered by many financial analysts to be the most important world stock indicator.be the most important world stock indicator.

Some of these companies Some of these companies include: include:

Wal-MartWal-Mart McDonald’sMcDonald’s Coca-ColaCoca-Cola MicrosoftMicrosoft Home DepotHome Depot Exxon-MobilExxon-Mobil Walt DisneyWalt Disney AppleApple

Dow Jones Average 1900-2010Dow Jones Average 1900-2010

How is the average How is the average calculated?calculated?

The DJIA is calculated by adding the sum The DJIA is calculated by adding the sum stock values of the 30 companies listed stock values of the 30 companies listed in the index and dividing the sum by an in the index and dividing the sum by an established divisor.established divisor.

The current divisor is .01255527090The current divisor is .01255527090 Because the divisor is less than one it Because the divisor is less than one it

actually serves as a multiplier.actually serves as a multiplier.

Historic HighHistoric High

The DJIA reached an historic The DJIA reached an historic high on October 9, 2007. high on October 9, 2007.

It closed at It closed at 14,164.14,164.

The Dow Today The Dow Today

The DJIA was at The DJIA was at 12,965.0012,965.00 as as of the closing bell yesterday.of the closing bell yesterday.

History of the Dow JonesHistory of the Dow Jones

We are going to watch a video that We are going to watch a video that talks about the origins of the Dow talks about the origins of the Dow Jones Industrial Average and provides Jones Industrial Average and provides an economic history of the nation from an economic history of the nation from the late 1800’s until the mid-1990’s.the late 1800’s until the mid-1990’s.

After the video, we will focus upon investing After the video, we will focus upon investing money.money.