Investing in the Dow Jones today will see you investing in one of the most well known indexes in the US stock market today. The Dow Jones is one of three major indexes of market movements. It provides buyers and sellers a place to trade in various assets. In the beginning, when the Dow was founded, it had only 12 components. The Dow Jones today sees it with 30 companies. It is sometimes referred to as the Dow 30 or Dow Jones Industrial Average. The index is price weighted, and if you need to calculate the Dow Jones, you will add the current prices of the 30 companies on the index together, and then divide by the Dow divisor, which is always changing.
If you have invested in the Dow Jones today, and have some stock picks in your portfolio with one stock pick splitting, then the Dow divisor would change in order to maintain the same constant value of the index. Many critics of the Dow argue that with over 10000 publicly traded companies in the US, the Dows 30 companies cannot possibly make it a benchmark for the entire stock market. However, despite this fact, it remains the most cited and recognized of the stock market indices.
If you are trading stocks on the other exchanges, you can take advantage of the Exchange traded funds and derivatives through options and futures contracts that are available on the Dow Jones today. One family of ETFs available is the SPDRS, which are issued by the asset manager SSGA State Street Global Advisors. Trading on the index requires that you do your research on the Dows market movement. If you perform technical analysis using historical charts, you will be able to look for similarities in the way the market is moving at present. This will allow you to see what phase the markets are currently in.
If you have a stock market video, you can find information on the Dow Jones today that shows you its history and how the index performed through the many financial crises in our century. This will allow you to compare those historical events with the current economic uncertainties in the present day. The market sentiment of investors back then that drove the market will be the same in investors today. They will continue to follow the same patterns during upward trend and downward trends. This will help you to predict the movements of the Dow Jones today so that you can increase your chances of making a profit.