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17

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 addition, if you're interested in a large cap versus small cap comparison then compare indexes representative of those sectors. The DJIA and other indexes are a ...


14

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 radio, and local TV news. It is in heavy rotation on the lower third chyron on cable news. But why? Because it is easy to "understand": going up is good, ...


8

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 the stock market. EDIT: 4. "The Dow" is easier to say, and more dramatic, than "the S&P 500" or "the NASDAQ".


3

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 chosen using relatively simple algorithms: the S&P 500 is the top 500 US public companies by market capitalization, the NASDAQ Composite Index is all companies ...


3

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 Return S&P 500 index Similarly for the Dow Jones Industrial Average (DJIA). The Price Return DJIA is the one you see on financial news. According to S&P ...


2

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, but you must be holding as of the close. If you buy it any time after that, you will not be entitled to the dividend. The "ex" part of ex-dividend ...


2

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 not be surprises. If you look at the changes to the Dow you will see additions and subtractions whenever a split of a component company takes place. They use ...


1

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 shares and shares of the underlying basket of securities. The prospectus of the ETF provides the details, but it goes along something like this: A holder of 100,...


1

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 order for that dividend to become a gain, the stock must rise by the amount of the dividend. IOW, if you buy XYZ at $100 at the close and it goes ex-dividend ...


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