Dow Jones Stock Market - Overview of American Stock Exchanges
The Dow Jones stock market is the largest and leading stock market in the world. It provides investors with the best multiform and secure financial instruments.
Dow Jones stock market (DJIA), also known as the Dow Jones Industrial Average, the Dow Jones 30 or simply the Dow Jones stock index, was created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow. Today it's owned by CME Group as the majority owner of the Dow Jones index. This index shows how 30 major public corporations are trading in the United States based on a standard trading session in the stock market. The Dow Jones stock market in value is not the actual average of the component stocks prices, but means the sum of the component prices are divided by a divisor, it will change anytime when one of the component stocks has split or stock is divided for generating a suitable value for the index.
The Dow Jones stock market includes the world's largest multinational corporations and corporation's brands such as Coca-Cola, Microsoft, Apple, General Electric and Exxon Mobil. The 30 Current Shares in the Dow Jones Industrial Average are important factors in its industries, and its shares are held by private individuals and institutional investors. The Dow Jones holds for 27% of the market capitalization of free float-adjusted marketing the U.S on 31 December 2008. Over two-thirds of the 30 components of the Dow Jones Industrial companies are manufacturers and consumer goods. The others represent various sectors such as financial services, entertainment and information technology. The Dow Jones stock market is not limited to the traditional definition of industrial shares. In contrast, the index serves as a measure of the total U.S. market for such diverse areas as financial services, technology, entertainment, retail and consumer goods. Market value of the Dow Jones stock market is a weighted average price of 30 blue-chip stocks, mainly industrials but also includes American Express Co. and American Telephone and Telegraph Co. Prepared and published by Dow Jones & co., it is the oldest and most widely quoted of all the market indicators. The components, which change from time to time between 15% and 20% of the NYSE securities, market value. The average is expressed in points, not dollars. The Dow Jones stock market product line provides a range of investing instruments: leveraged equities, futures contracts and options contracts.
New York Stock Exchange
The New York Stock Exchange (NYSE) is based at 11 Wall Street in Manhattan, New York, USA. It is the world's largest market capitalization at $ 11.92 trillion in August 2010. The average daily value of transactions stood at around U.S. $ 153 billion in 2008. The NYSE is directed by NYSE Euronext with the fully electronic stock exchange. The New York Stock Exchange is at 11 Floor of Wall Street and consists of four rooms used for the facilitation of trade. A fifth trading room in 30 Broad Street was closed in February 2007. The main building at 18 Broad Street, corner of Wall Street and Exchange Place was designated a National historic site in 1978 and was the 11 Wall Street building. The New York Stock Exchange provides ways for buyers and sellers to trade securities in companies registered for public trading. The NYSE is open for trading Monday through Friday from 9:30 am to 4:00 pm ET except holidays declared by the Exchange in advance. Trades are in a format of continuous auction on the floor of the NYSE where traders can do in securities transactions on behalf of investors. They do from time to time (about 10% of the time), trade by committing their own capital and as a matter of generalizing information to the public that helps to gather buyers and sellers together. The auction is pulled in the direction of automation in 1995 with wireless hand-held computer (HHC). The system allows traders to receive and execute orders electronically via wireless transmission. NYSE stocks are traded via its electronic Hybrid Market in 24 January 2007.
The NASDAQ Capital Market includes over 550 companies that have applied for a list, has met the licensing requirements and liquidity of corporate governance requirements. The market, formerly named the NASDAQ SmallCap Market, was changed in 2005 to show the key purpose of this market as a capital rising. The NASDAQ-100 Index lists 100 of the largest non-financial domestic companies on the NASDAQ Global Select Market. Opened in January 1985, each stock in the index is represented by its market capitalization according to the total market value of the Index. The Index reflects NASDAQ highest growth corporations in all major industries. All components of the index have a minimum market capitalization at $500 million and are traded in average volume at 100,000 shares on daily basis. The NASDAQ Short Sale Rule forbids NASD members from selling a NASDAQ National Market stock at or below the inside, best bid when that price is lower than the previous inside best bid in that stock. A unique four and five letter symbol assigned to stocks of NASDAQ. If a fifth letter shows up, it identifies the problem about a specific issue of ordinary shares or capital shares.
S&P 500 Index
The S&P 500, formally named as the S&P 500 Composite Stock Price Index, is a European style, the index is capitalization-weighted of 500 stocks that are traded on the New York Stock Exchange, American Stock Exchange and NASDAQ Global Select Market or NASDAQ Global Market. Each company's influence on index performance is cap-weighted advance directly proportional to its relative market value. This feature makes the S & P 500 such a valuable tool for measuring the performance of actual portfolios.
Billions of dollars are flowing from outside of the United States into U.S. stock market every years. Invest in U.S. securities can be very profitable, but also there are risks just like in any other stock market. If you want to invest in the Dow Jones stock market, you should find a good broker who has ability to fully access to all of its advances. Although, nearly all brokers can do that because it is the most important and largest stock exchange in the world. Make sure the broker is a well-known established firm that many customers have been deposited and trade for a long time. In addition, compare the charges between the various brokerage commissions.
Written by: Goran Dolenc
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