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?10 Views
Finance allah shmoop what is dow theory Well it's a
push me pull you index Yeah like you know the
doctor do little lama thing with the overall average of
the dow thirty stocks here and the dow jones transport
index here where one goes well generally the other follows
that is they are highly correlated in price and one
is basically an indicator of where the other is heading
Why Well originally the dow transports were railroads which appalled
all the crap that the dow industrials made so you'd
think that one would follow the other And if the
push me pull you thing didn't work for you well
take a short look at this caterpillar crawling you know
like that one part goes forward and then the other
follows Well dow theory is one of a good gillian
black box crystal ball theories that charters tried to use
to predict how the stock market would run in the
future so that they could profit from those predictions And
like all other black box theories they work sometimes even
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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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...