Dow 30

  

The movie tag line: Two guys meet in a bar and decide to choose 30 large, publicly owned companies to track and use as an index for the entire stock market.

We didn’t say it was a hit movie.

Created by the former editor of the Wall Street Journal, Charles Dow and his business partner Edward Jones established the Dow 30 in 1896, and today investors all over the world refer to the Dow Jones Industrial Average, or just the “Dow,” when they want to evaluate the market after a standard trading session. The 30 companies that are tracked change on a regular basis as their stocks and their industries gain or lose in popularity.

Too bad there wasn’t an Apple in 1896.

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Finance: What is the Dow Theory?11 Views

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Finance allah shmoop what is dow theory Well it's a

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push me pull you index Yeah like you know the

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doctor do little lama thing with the overall average of

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the dow thirty stocks here and the dow jones transport

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index here where one goes well generally the other follows

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that is they are highly correlated in price and one

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is basically an indicator of where the other is heading

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Why Well originally the dow transports were railroads which appalled

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all the crap that the dow industrials made so you'd

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think that one would follow the other And if the

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push me pull you thing didn't work for you well

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take a short look at this caterpillar crawling you know

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like that one part goes forward and then the other

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follows Well dow theory is one of a good gillian

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black box crystal ball theories that charters tried to use

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to predict how the stock market would run in the

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future so that they could profit from those predictions And

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like all other black box theories they work sometimes even

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very nicely for a while with high prediction levels That 00:01:08.293 --> [endTime] is well until they don't No

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Finance: What is the Dow Jones Industrial Average?
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What is the Dow Jones Industrial Average? The Dow Jones Industrial Average is usually just called the Dow. It’s an average of 30 of the most well...

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