Dow Jones Sample Essay

Peoples have made 1000000s thanks to the Dow Jones. There are tonss of stock exchanges out at that place. but the Dow Jones is the most of import one out at that place. It is a stock exchange made up of a batch of of import. successful companies. and it is a really good index of the economic system. A stock exchange has many intents. It is an entity that provides services for stock agents and bargainers to merchandise stocks. bonds. and other securities. Securities traded on a stock exchange include portions issued by companies. unit trusts. derived functions. pooled investing merchandises and bonds. For a company to be able to merchandise their stocks on a certain stock exchange it must be listed there and they must be a member of the stock exchange. Stockss and bonds are offered to investors on the primary market. but are sold on the secondary market. Some stock exchanges like the Dow Jones have tonss of different companies doing them up. Thirty of the largest publically owned companies based in the US are the companies which make up the Dow Jones Index.

The undermentioned companies make up the Dow Jones Index: 3M. Alcoa. American Express. At & A ; T. Bank of America. Boeing. Caterpillar. Chevron corporation. Cisco systems. Coca-cola. DuPont. ExxonMobil. General Electric. Hewlett-Packard. IBM. Intel. Johnson & A ; Johnson. JPMorgan Chase. Kraft Food’s. McDonald’s. Merck. Microsoft. Pfizer. Procter & A ; Gamble. The Home Depot. Travelers. United Technologies Corporation. Verizon Communications. Wal-Mart. and Walt Disney. The companies doing up the Dow Jones Index have changed 48 times in its 114 twelvemonth history. Chevron and Bank of America replaced Altria Group and Honeywell in 2008. Besides. In 2008 American International Group was replaced by Kraft Foods. General Motors and Citigroup in 2009 were replaced by the travellers companies and Cisco Systems. In 2009. IBM had the highest stock monetary value with 107. 24. The Dow Jones is a helpful index of the economic system. The Dow Jones is a important portion of the economic system. Small and big companies are able to increase their capital by selling portions of their company to investors. Another benefit of selling portions is the money coming into the company.

With the new money. the company will be able to research and sell new merchandises going more diversified. and hence increasing its market portion value. When investors make an investing. their money is non sitting lazily alternatively it is in the custodies of a company which may increase their production since they have more money. Increased production is a benefit for the economic system in countries such as agribusiness. industry. and commercialism. If a company makes a large addition in its portion values. the investors can potentially do a batch of money. For illustration. if the portion monetary values addition from one dollar to two dollars. so the investors have doubled their money. On the other manus. investors can lose a batch of money. if the portion monetary values go from one dollar to fifty cents. Because of the Dow Jones. companies by and large tend to better direction criterions and efficiency by holding a batch of different proprietors to run into the demands of stockholders. There are tonss of regulations for public corporations imposed by public stock exchanges and the authorities.

Anyone can do an investing in a company in the Dow Jones ; it doesn’t affair if it’s every bit little as one dollar or every bit big as a million dollars. It’s just because everyone can have a little portion of any company in the Dow Jones. even a multi-billion dollar company which is exciting to some people. The Dow Jones is normally a good index of the economic system. If it is stable or easy increasing. it means the economic system is strong. An economic recession. depression. or fiscal crisis could finally take to a stock market clang. It is a good thought to supervise stock monetary values daily. and so put when they are at a lower than usual monetary value. because it will travel back up sooner or later.

Although doing a million dollars is a possibility. losing a million dollars is besides a possibility. It is a good thought to supervise the stock exchange for a long clip to better place any tendencies in the index to increase the opportunities of doing a good investing. 30 first-class. immense companies make up this of import index frequently used to see how the economic system is making. With finding and a small fortune. any company can do it to the functionary and extremely esteemed Dow Jones Index.


I found out what the stock exchange was from hypertext transfer protocol: //en. wikipedia. org/wiki/Stock_exchange. On my 2nd organic structure paragraph I used hypertext transfer protocol: //en. wikipedia. org/wiki/Dow_Jones_Industrial_Average and hypertext transfer protocol: //www. 1728. com/dowjone2. htm. In happening out the value and intent of the Dow I used hypertext transfer protocol: //en. wikipedia. org/wiki/Dow_Jones_Industrial_Average.


I'm Tamara!

Would you like to get a custom essay? How about receiving a customized one?

Check it out