What Exactly are the Points in the Dow Jones?

The Dow Jones Index was originally an arithmetic average stock price index compiled in 1884 by Charles Henry Dow, founder of the Dow Jones Company (1851-1902). The Dow Jones Index is the oldest stock index in the world. Its full name is the average stock price index.

Dow Jones Index

The Dow Jones Index was first founded by the Dow Jones Company in 1884

The four stock price average indexes are:

Dow Jones Industrial Average Stock Index compiled from the stocks of 30 famous industrial companies;

The average stock price index of the Dow Jones transportation industry based on the stocks of 20 well-known transportation companies;

Dow Jones Utilities Stock Average Index, compiled from the stocks of 15 well-known public utility companies;

The Dow Jones Stock Average is based on the stocks of the 65 companies involved in the three stock price average indexes.

Of the four types of Dow Jones stock indexes, the Dow Jones Industrial Stock Average is the most famous, and it is widely reported by the mass media. It is cited as a representative of the Dow Jones Index. The Dow Jones Index is owned by the American Newspaper Group-

The original calculation method of the Dow Jones Stock Price Average Index was obtained by simple arithmetic average method. When the stock ex-rights and dividends are encountered, the stock index will be discontinuous. After 1928, the Dow Jones average stock price changed to a new calculation method, that is, the use of connection technology when counting stock ex-dividends or ex-dividends to ensure the continuity of the stock index, so that the stock index was perfected, and gradually extended to worldwide.

The earliest calculation formula is: the average number of stock prices = the sum of the prices of selected stocks / the number of selected stocks ^[2]

In order to provide Chinese and global investors a tool to accurately track the Chinese stock market, the Dow Jones Index Series uses the same strict standards as the Dow Jones Global Index. The Dow Jones Index uses tradable shares to select constituents and compile indexes, excluding state-owned shares and unlisted employee shares, in order to provide investors with an accurate representative index, which reflects the actual number of shares that investors can trade. When the Dow Jones Indices calculates the market capitalization to select constituent stocks, it does not count towards large holdings.

On May 27, 1996, the Dow Jones Company launched the Dow 88, Dow Shanghai and Dow Shenzhen Indexes in commemoration of the 100th anniversary of the release of the Dow Jones Industrial Stock Average Price Index, the most widely reported market index, launched in 1896. The base period of these three indexes is December 31, 1993, and the base numbers are all 100.

On November 5, 2007, the Dow Jones Corporation Index Department announced today that it will adjust the constituents of the Dow Jones China Index.

According to the fast-forward principle, starting from November 7, 2007, China National Petroleum Corporation (oil and gas, 0857. HK; 601857. SH) will replace TCL Group Co., Ltd. (personal and household products, 000100. SZ) Became a constituent of the Dow Jones China 88 Index.

At the same time, PetroChina will also be included in the Dow Jones China Index and the Dow Jones Shanghai Index.

On October 10, 2007, the Dow Jones Corporation Index Department announced today that adjustments will be made to the constituent stocks of the Dow Jones China 88 Index (Dongzhong 88), Dow Jones China Index (Dongzhong), and Dow Jones Shanghai Index (Dow Shanghai).

According to the fast-forward principle, China Shenhua Energy Co., Ltd. (Basic Resources, 1088. HK; 601088. SH) and China Construction Bank Corporation (Bank, 0939. HK; 601939. SH) will be included in Daozhong 88, Daozhonghe Road Shanghai Index.

China Shenhua and China Construction Bank were listed on the Shanghai Stock Exchange on October 9, 2007 and September 25, 2007, respectively.

At the same time, Jiangxi Ganyue Expressway Co., Ltd. (Industrial Supplies and Services, 600269. SH) and Anhui Fengyuan Biochemical Co., Ltd. (Food and Beverage, 000930. SZ) will be eliminated from Daozhong 88.

The constituents of the Dow 88 Index are the result of a semi-annual review of the index. On March 17, 2008, the New York-Dow Jones Corporation Index Department announced today that adjustments to some of the constituents of the Dow Jones China Index Series have been completed. Dow Jones China 88 Index (Dongzhong 88), Dow Jones China Overseas 50 Index, Dow Jones China Index (Dongzhong), Dow Jones Shanghai Index (Dow Shanghai), Dow Jones Shenzhen Index (Dow Shenzhen) and Dow Jones First Financial China 600 Index (DJ CBN China 600 ) The constituent stock changes will take effect on March 24, 2008.

After this adjustment, Dazhong 88, which tracks the largest and most liquid 88 stocks in the Shanghai and Shenzhen markets, will replace 8 constituent stocks. The market value of the constituent stocks included in the index will account for approximately the total circulation of the Shanghai and Shenzhen A-share markets 44.52% of market value. After the adjustment, the Shanghai market stocks of the constituent stocks increased from 63 to 67, and the Shenzhen market stocks decreased from 25 to 21. As far as the market capitalization of 88 constituent stocks in Daozhong is concerned, the proportion of Shanghai stocks is 82.43%, and the proportion of Shenzhen stocks is 17.57%. ^[2]

1906 ~ 2013

On January 12, 1906, it rose to 100 points for the first time and closed at 100.25 points.

On October 28, 1929, it dropped 38.33 points, a daily decline of 13%.

On March 12, 1956, it crossed 500 points for the first time and closed at 500.24 points.

On November 14, 1972, it broke 1,000 points for the first time and closed at 1003.16 points.

On December 6, 1974, it fell to 577.60 points, the lowest point in nearly 12 years and the worst performance since the bear market in the 1930s.

On January 8, 1987, it broke 2000 points for the first time and ended trading at 2002.25 points.

On October 19, 1987, it plummeted by 508 points, with a daily decline of 22.6%, and closed at 1,738.74 points. This day was called "Black Monday".

On April 7, 1991, it rose for the first time to 3000 points and closed at 3004.46 points.

On February 23, 1995, it exceeded 4,000 points for the first time and closed at 4003.33 points.

On November 21, 1995, it exceeded 5000 points for the first time and closed at 5023.55 points.

On October 14, 1996, it broke 6,000 points for the first time and closed at 6010.00 points.

On February 23, 1997, it rose for the first time to 7000 points and closed at 7022.44 points. It rose by 1000 points in 89 trading days, setting the index to record the fastest jump of 1,000 points.

On July 16, 1997, it rose for the first time to 8000 points and closed at 8038.89 points.

On October 27, 1997, it plummeted by 554.26 points, with a daily decline of 7.2%, and closed at 7161.15 points, the highest daily drop point in history. Moreover, the first time the suspension of the stock market was activated, due to the excessive decline, it was suspended twice that day. Close and close in advance.

On October 28, 1997, it soared 337.17 points, setting a record for daily rising points.

On April 6, 1998, it broke the 9000 mark for the first time and closed at 9033.23 points.

On August 31, 1998, it fell sharply by 512.61 points, exceeding 8000 points.

On March 16, 1999, it broke the 10,000-point mark for the first time in the session, but closed at 9,940.47 points after passing the mark.

On March 29, 1999, it closed for the first time with a 5-digit number and closed at 10006.78 points.

On April 26, 2007, it closed at 13,000 points.

On October 11, 2007, the highest point ever seen was 14,198.

On October 6, 2008, affected by the financial crisis, it fell below 10,000 points and closed at 9,962 points.

On October 10, 2008, it adjusted to a new low of 7884 points and closed at 8451 points.

On March 2, 2009, affected by the financial crisis, it fell below 6,800 points, the lowest since April 1997.

On March 10, 2009, affected by factors such as Citibank's earnings, it rose by more than 379 points, the highest since November 2008.

September 14, 2009, exceeded the 10,000-point integer mark

On February 1, 2013, it closed at 14009 points. After more than 5 years, it rushed to 14,000 points again.

March 5, 2013: The Dow Jones Index hit an intraday record high of 14,286.37 points, and closed at 14,253.77 points. Since 2007

All lost land was recovered.

May 3, 2013: The Dow Jones Index climbed to a maximum of 15009.59 points during the session. The index climbed to 15,000 points for the first time since its establishment and reached a record high. ^[2]

Charles Henry Dow, a small farmer who only attended elementary school, relied on himself to become a great financial journalist. Edward Davis Jones, a graduate of Brown University, is grumpy as his red beard shows. Charles Milford Bergstriser lost his chance to stay in history because of his long surname.

In November 1882, two young journalists, Charles Dow and Edward Jones, set up the Dow Jones Company in a small office at 15 Wall Street, when all of their belongings consisted of a typewriter and a telephone. The company's first business is an evening paper with only two pages. The newsletter, called "Customer Evening News," contained stock market-related information. In the early days, in order to save money, the two managers could only copy the contents of the evening paper on 24 points of poor quality paper. Shortly after the company was founded, a third partner journalist, Charles Bergstriser, joined in, but the company name did not change.

In 1884, they launched an index of 11 stocks. Among them are the average prices of 9 railway companies and 2 steam turbine companies, which is also the prototype of the Dow Jones Index.

On July 8, 1889, the Evening News was changed to the Wall Street Journal, which specializes in stock information. On May 26, 1896, Charles Dow's "Wall Street Journal" first published the average price index of 30 industrial stocks, commonly known as the Dow Jones Index.

In March 1902, the Dow Jones Company was sold to journalist giant Clarence Byron for $ 130,000. Charles died in the same year, but the stock index he created has profoundly affected the world economy and continues to this day.

On August 1, 2007, media giant Murdoch News acquired Dow Jones for $ 5.6 billion.

Some people criticize the Dow Jones Industrial Index because it is not a price-weighted average, which makes high-priced stocks more influential in the average index than low-priced stocks. This can have misleading results. For example, the increase of one dollar of low-priced stocks can be easily offset by the decrease of one dollar of high-priced stocks, even if the relative percentage increase of low-priced stocks is very large.

In addition, the inclusion of only 30 stocks in the average index has caused additional criticism, as the Dow Jones Industrial Index is widely used as an indicator of overall market performance. For these reasons, the S & P 500 has become a more widely quoted and more often used as a more solid indicator of broad market performance.