5.國(guó)際金融課件fim2014imba忻7if dow jones index

1、Dow Jones IndexDow Jones IndexThats include:The Dow Jones Industrial Average The Dow Jones Transportation AverageThe Dow Jones Utility AverageThe Dow Jones Index And The Dow Jones Index Series, more than 4,000 thought out the world, that related to stock market, futures, oil, consume, etc.Dow Jones

2、Index - Background The Dow Jones Industrial Average (DJIA) was created by a financial journalist named, most appropriately, Charles Dow. Though Charles Dow created his first stock market average in 1884, this initial index was comprised of only 11 stocks, most of which were railroad companies. It wa

3、snt until October 1, 1928 that the Dow was modified to consist of thirty stocks as it does to this day. CharlesDowEdwardJonesDow Jones Index - BackgroundAlcoa (NYSE: AA)American Express (NYSE: AXP) AT&T Corp. (NYSE: T) Boeing (NYSE: BA)Caterpillar (NYSE: CAT) Citigroup (NYSE: C) Coca Cola (NYSE: KO)

4、 Disney (NYSE: DIS)DuPont (NYSE: DD)Verizon Communications Inc. (NYSE: VZ)Exxon-Mobil (NYSE: XOM) General Electric (NYSE: GE) General Motors (NYSE: GM) Hewlett-Packard (NYSE: HWP) Home Depot (NYSE: HD) Honeywell (NYSE: HON)IBM (NYSE: IBM)Intel (Nasdaq: INTC)Walt Disney Co. (NYSE: WMT)Johnson & Johns

5、on (NYSE: JNJ)McDonalds (NYSE: MCD)Merck (NYSE: MRK) Microsoft (Nasdaq: MSFT)MN Mining Manufacturing (3M) (NYSE: MMM)Morgan JP (NYSE: JPM)Pfizer Inc. (NYSE: PFE)Procter & Gamble (NYSE: PG)SBC Communications (NYSE: SBC)United Technologies (NYSE: UTX)Walmart (NYSE: WMT)Now, the list of the thirty stoc

6、ksDow Jones Index - BackgroundThe Dow Jones Transportation Average is a price-weighted average of 20 transportation stocks traded in the United States. The average was started back in 1884. This index includes airlines, railways, trucking, and delivery companies. The Dow Jones Utility Average is a p

7、rice-weighted average of 15 utility stocks traded in the United States. The DJUA was started back in 1929. The utility average tends to decline when investors expect rising interest rates. Utilities tend to borrow a lot of money and, consequently, are more sensitive to changes in interest rates. Dow

8、 Jones Index - Today The Dow Jones Index is often referred to as showing the “health” of the US and World market. Today the Dow Jones Index has e the vane of the investor.1990199920002009How to calculate the Dow Jones Index To calculate the DJIA, the current prices of the 30 stocks that make up the

9、index are added and then divided by the Dow divisor, which is constantly modified. a WjPj j=1p=- a Wj j=1P：股票平均價(jià)格，W：第j種樣本股票的權(quán)數(shù)（流通股數(shù)量） Pj：第j種樣本股票的價(jià)格The Methodology of DJIA I Each December, the 30 stocks of the Dow Jones Industrial Average are ranked by dividend yield, based on actual paid dividends d

10、uring the current calendar year, in descending order. Dividends are adjusted on a case-by-case basis for corporate actions such as mergers and acquisitions. No special dividends are included. The top ten on the list e the component stocks of The Dow 10. The five lowest-priced stocks in The Dow 10 e

11、the component stocks of The Dow 5.The Methodology of DJIA II The watch list of The Dow 10 and The Dow 5 is published on a daily basis, beginning on or about December 20, based on updated dividend data and closing prices from the previous trading day. The list that is published and announced two trad

12、ing days prior to the last trading session of the year indicates the final components for the following year. The indexes are revised after the close of trading on the last business day in December. The new components are included in the indexes at the opening of the first trading session of the new

13、 year. The Methodology of DJIA III A watch list based on year-end values will be published in January and updated at the beginning of each month. Dividend yield will be calculated based on updated dividend data over the past 12 months and the closing prices at the last trading day of the previous mo

14、nth. The Dow 10 and The Dow 5 are equal-dollar-weighted based on their closing prices on the last trading session of the year. The indexes will not be reweighted due to price changes during the ensuing year.The Methodology of DJIA IV If any Dow 10 stock is removed from the Dow Jones Industrial Avera

15、ge during the year, it will be removed from The Dow 10 and The Dow 5 at the same time. The ponent stock with the highest dividend yield on the most current watch list for The Dow 10 will replace the deleted component in The Dow 10 at the departing weight of the removed stock. If the removed company

16、also was in The Dow 5, the lowest price stock in the revised Dow 10 will be the replacement in The Dow 5. The Methodology of DJIA V If any Dow 10 or Dow 5 company is involved in a spinoff during the year, the price of the parent company will be adjusted to reflect the value of the spinoff after the

17、close of trading on the ex-date. The spinoff will not be included in the index, but will result in a divisor adjustment being made to the price index. For the total-return index, the value of the spinoff will be reinvested in the current component stocks in an equal-dollar amount at the closing pric

18、e on the same day.The Methodology of DJIA VI If the removed company also was in The Dow 5, the lowest price stock in the revised Dow 10 will be the replacement in The Dow 5. It will be added at the departing weight of the removed company. The total return of both The Dow 10 and The Dow 5 will be computed based on dividend reinvestment. Cash dividends will be reinvested in all current index component stocks in an equal-dollar basis on the ex-date. The Methodology of DJIA VI Special dividends issued by any component stock will