17
votes
Why is so much focus put on the Dow Jones Industrial Average?
I think that you've been sidetracked by a number of factors such as price weighted versus capitalization weighted, the Dow Divisor as a multiplier, and the exchange that the stocks trade on. In ...
- 75.8k
14
votes
Why is so much focus put on the Dow Jones Industrial Average?
The DJIA is followed by non-investors, and even by investors who are only invested through their 401(k) or a mutual fund in their IRA. It is reported during the quick market updates given on news ...
- 136k
8
votes
Why is so much focus put on the Dow Jones Industrial Average?
IMO:
Tradition: people have been following it for a Really Long Time.
Laziness: do media outlets want to put the effort into finding something better.
Practicality: a lot of people are invested in ...
- 50.6k
3
votes
Why is so much focus put on the Dow Jones Industrial Average?
The DJIA is the only common stock index composed of stocks that have been carefully chosen to represent the range of industries that make up the economy. Most other indexes are composed of stocks ...
- 1,917
3
votes
Accepted
Are the S&P 500 and DOW "performance index" or normal/price index?
S&P publishes at least three S&P 500 indices:
Price Return S&P 500 index — this is the one you see on TV and financial news. Common symbol: SPX.
Total Return S&P 500 index
Net Total ...
- 16.9k
2
votes
How to determine date that an ETF must be owned to be eligible for the dividend payment?
It is really quite simple for this and other corporate actions - and not just for ETFs.
You need to be holding at the close of the day prior to the ex-date. You can buy at this time at or before this,...
- 3,829
2
votes
Does the Dow Jones Industrial Average (DJIA) always have 30 constituent companies?
With only 30 companies in the index it is easy to keep it at that number. While these companies do split in two, they do merge with other companies, and they do split their stock price, these tend to ...
- 136k
1
vote
Accepted
Can I convert shares in an index ETF into shares of the index constituents?
Yes it can be done, but not by small market participants.
The reason that ETFs that follow a market indexes so closely is because an arbitrage mechanism exists that allows conversion between ETF ...
- 5,083
1
vote
Can I convert shares in an index ETF into shares of the index constituents?
You can not. You can BUY the shares, but there is no conversion order or service or something.
- 11.6k
1
vote
Are the S&P 500 and DOW "performance index" or normal/price index?
When a stock goes ex-dividend, its share price is reduced by the amount of the dividend, creating an equal and opposing capital loss. Ignoring taxation, if received in a non sheltered account, in ...
- 75.8k
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