dow jones industrial average pricing question?

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  • dow jones industrial average pricing question?


Answer #1 | 26/12 2013 01:53
1. The method for calculating the Dow Jones Industrial Average is as: - Review the method used to calculate the DJIA. The DJIA is calculated using a price-weighted method. Most other market indexes are calculated on a market-capitalization basis. The price-weighted method places equal importance on each stock, regardless of the size of the company in the marketplace. -Look up the current price for each stock in the Dow 30. -Multiply stock prices of those companies in the Dow 30 by the Dow multiplier and sum. The current (November 18, 2009) multiplier is 7.964782. This means you need to multiply each price in the DJIA by this number and then sum for the average. 2. Read more: . .

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