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Economy

MichMan

(15,229 posts)

15. The Dow Jones average is based on 30 major stocks

Reply to FirstLight (Original post)

Mon Aug 28, 2023, 10:39 PM

Aug 2023

That is the index that is communicated daily in the media, but again it just represents 30 stocks. You might not own any of them.

It can vary from one day to another based on just a couple of them going up or down. It is often used as a barometer of the entire stock market, but IMO the S&P 500 is a much better indicator since that is composed of 500 companies.

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Be gentle, Stock Market is all new to me so I have questions: [View all] FirstLight Aug 2023 OP

A financial expert once told me that if I wasn't going to spend spooky3 Aug 2023 #1

HEY, spooky3! elleng Aug 2023 #3

Hi elleng! spooky3 Aug 2023 #4

yes, our broker-dude is on it...already saved us a bunch of taxes! FirstLight Aug 2023 #5

s & P index does that for you at the end of each year. Poor performers are dumped and replaced. 3Hotdogs Aug 2023 #12

I'm 'spreading the pain,' elleng Aug 2023 #2

Buy an index fund. mahatmakanejeeves Aug 2023 #6

If they were inherited them you might have options IbogaProject Aug 2023 #13

my father in law, a very highly placed executive at a company you all have heard of lapfog_1 Aug 2023 #7

I've done well with companies with multigraincracker Aug 2023 #8

For most of us, investing in the market is like playing poker in a game Chainfire Aug 2023 #9

Stocks enable you to benefit from growth in the economy bucolic_frolic Aug 2023 #10

May I suggest... Think. Again. Aug 2023 #11

I really love this take... FirstLight Aug 2023 #16

Questions to ask Warpy Aug 2023 #14

The Dow Jones average is based on 30 major stocks MichMan Aug 2023 #15