![]() ![]() the Dow might fall dramatically, but it's all because of one company. The only thing that confuses me about the Dow Jones is what if one of the big companies has a serious problem? Like say that Apple or IBM had to do a recall on computer parts, or something. Watching both of them, along with the S&P are the three indexes that are watched most often. Many times these stocks are more volatile than those that are listed on the Dow Jones. Most companies listed on the NASDAQ are more of the technology companies. The NASDAQ is another index that many people also watch and it is made up of thousands of companies. Even though this number is only made up of 30 companies, by looking at a composite of all these companies from one number, you get a good picture of what the market is doing on a given day. Many of the companies on the Dow also have dividend programs, and this is a great way for someone to get their feet wet with the stock market.įollowing the Dow Jones Industrial Average will give you a general indication of what the market is doing as a whole. Often times, these are the companies they are most familiar with. Many people like to invest in older, stable companies that are listed on the Dow. When you look at where the Dow is today, as compared to many years ago, you become more aware of the power of the stock market. I find it very interesting to go back in time and look at the historical prices of the Dow Jones Industrial Average. I like to invest in technology companies, so don't buy as many stocks listed on the Dow as I do the NASDAQ, but I never discount the importance of knowing what the DOW is doing. The three major indexes, the Dow, NASDAQ and S&P often, but not always, move together. Even though the Dow is only made up of 30 stocks, I still watch this closely to get a feel for what is going on in the overall market. ![]()
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