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2

Macroeconomics won't help much either. Even if you understand all of the intricacies of currency fluctuations, interest rates, monetary and fiscal policies, etc., it won't give you a leg up in trading because most everyone else in the FX market known those things too. "kinda relevant" is about the right description. If you want to learn macro ...


3

Relevant(?) anecdote: On October 23, 1962, the US Postal Service issued a stamp commemorating the late UN Secretary General Dag Hammarskjöld. About 121.4 million of the stamps were printed. It was soon noticed that an unknown number of the stamps had been printed with the background inverted, creating a rare and valuable error. One such stamp, used on the ...


1

With collectibles, supply and demand are the primary factors that determine price. An item becomes a collectible when there is demand and the item is somewhat rare. If you now have a valuable collectible and you increase the supply, not only does the value of the collectible decrease but so does the demand. So if Pokémon were to print more of their most ...


5

If gold were as common as lead, then it wouldn't be worth much more than lead. (Sure, it's shiny, minimally reactive and conductive, so would be worth more than lead, but not much more.) For this very reason, King Henry IV of England outlawed alchemy: more gold means less valuable gold, and therefore less wealth for the people already owning gold. The ...


5

Do they have some kind of written or unspoken agreement saying that they will never do things like that... Correct ... I realize that the value would drop if they did, but for them, it would still be worth it in terms of money? Ahh ! Don't forget, if they did that: people wouldn't buy them in the first place! You see? Say, today, they suddenly decided ...


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 ...


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, ...


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 ...


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".


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