ππ€ Have you heard the news? The Dow Jones hit a whopping 40,000 yesterday! But wait, 40,000 what exactly? Is it 40,000 points, dollars, or maybe even bananas? ππ€
I’m asking this question because I know many people are curious about the stock market, and understanding the significance behind the number can help us all make better investment decisions. Plus, it’s just intriguing to see the market reach such high numbers, right? π€―
Let’s break it down together and unravel the mystery behind the 40,000 milestone. What do you think it represents? Cast your votes in the poll below and let’s figure this out! π‘π #DowJones #StockMarket #Investing #Finance #Milestone #CuriousMinds #40KWhat?
There are a selection of important stocks that make up the Dow Jones list. All the prices (and fractions of prices) add up to a number. That number goes up and down based on the individual stocks value going up or down. All these stocks are, in general, are apparently going up lately. Itβs an indication that investors are feeling positive about stocks.
The total price for a bucket of selected stocks. Dow Jones selects 30 top industrial companies to create the index with. It’s weighted, not just straight stock prices. United Health stock is weighted about 9x more than Cisco or Intel stock.
Units.
Iβm just wondering where I should put my feet.
40,000 points! It’s a way to measure the value of companies in the stock market. It’s like measuring the temperature of Wall Street.
Likes!
Freedom units
*ka-kAW* π¦
That’s 40,000 Wall Street tears shed for every time someone asks this question.
40,000 Wall Street tears shed by day traders, my friend.
Warhammer
Warhammers
STONKS
40,000 dollarydoos
40,000 Dows obviously.
It is nothing. It is just index growth coefficient. Like when they come up with Dow or any other indexes they maybe started with 100, then let say total market valuation of all listed companies increase by 10%, it became 110, then let say total market valuation increased further by 5%, it became 115.5 and so on until it reached 40000.
In my seminar in finance class over 15 years ago (right before the great recession) the DOWN go to 14k. There were quotes from investors “I never thought it would go this high!”. And it had been in existence for decades at that point. Just a decade and a half later and it’s nearly tripled.
Points, which takes the sum of the 30 Dow component companies share prices and divides them by a divisor that keeps the index consistent with splits, dividends, share changes and other things.
The current divisor is roughly 6.5 so each dollar a component’s share price changes by means the index moves by more than 6.5 points.
Units. 40,000 units.
Schrute bucks
Yes, indeed
40,000 thingamajigs
Monopoly money.
Pump and dump
40000 indubitablies
20,000 Dows and 20,000 Jones’.
Units, duh!
Wealthliness Points
Schrute bucks
UNITS!
Glory for the Empire!
Penny’s
But really BIG ones
Bottles of beer on the wallβ¦
40,000 Warhammers, finally
$40,000 of whatever you don’t have
Imaginary valu points.
Bananas
40,000 quasi-arbitrary units.
There’s a semi-rigid calculation for the DJIA, based on a selection of stocks chosen by committee, and the prices paid for them by investors. The rigidity varies if the committee so chooses to change the stocks that are used in the calculation, and/or if investors do something crazy that dramatically shifts prices.
>The value of the index can also be calculated as the sum of the stock prices of the companies included in the index, divided by a factor, which is approximately 0.152 as of April 2024. The factor is changed whenever a constituent company undergoes a stock split so that the value of the index is unaffected by the stock split.
https://en.wikipedia.org/wiki/Dow_Jones_Industrial_Average
but really it’s a weighted average of the stock prices, using the weights in the list
Points
40,000 units
I believe the answer is points. Correct me if I’m wrong.