The Development History of Dow Jones Industrial Average

Dow Jones is not only two people, but also a company and an average index. Charles Henry Dow. 185 1 year1kloc-0/month 6 was born on a farm in Stirling, Connecticut. At the age of six, my father died. In the next 12 years, he worked hard on his farm. In addition, he does 20 different kinds of extra work at different times to support his mother. Although he only went to primary school, being a reporter is his biggest dream. So he joined the Springfield newspaper and the Party newspaper. Later, charles dow came to Providence, Rhode Island from Massachusetts and worked in Providence Daily.

Edward Davis Jones has a short temper and quick thinking. Jones graduated from Brown University, and he respects his college education very much. They soon became friends.

Doug and Edward Jones came together in Manhattan. Under the control of industrial giants, huge and monopolistic "trusts" have emerged in industries such as steel, copper, aluminum, coal, glass, sugar and wine. Tao foresees an abstract concept of domestic economy and domestic market, and foresees a way to measure what those industrial giants are doing. It's time for Dow Jones to set up its own company.

Dow Jones Company was founded in June 1882 1 1, and Charles milford Bogestrom joined as the third partner, but they didn't want to change the name of the company to "doug jones Bogestrom". They think it's a little long. Therefore, Bergstrezer lost the opportunity to go down in history. In a small office at Wall Street 15, the company only has a typewriter and a telephone. The Wall Street Journal was born. A hundred years later, the average index proposed and published by Dow Jones and The Wall Street Journal not only affected the whole Wall Street, but also affected the whole world.

He left a legacy named after him to Wall Street and the United States, that is, the newspaper and its basic index, the newly born Wall Street Journal, developed as fast as the United States. Dow Jones also has a much bigger office at 26 Brad Street. The core content of the newspaper has always been charles dow's groundbreaking index. The new average index of 12 stocks was also first published in the Wall Street Journal on May 26th, 1896. Charles dow is the father of analysis report. He was the first person who really observed the stock trading and saw its internal factors. Before him, everyone thought that the stock trading in these two days was absolutely independent and had no connection. Dow promised that the goal of the daily newspaper is to provide information, not to express opinions.

The opportunity to bring Dow Jones into the new century came to the company's new office at 44 Brad Street. 1902 On March 4th, the company sold it to Clarence Walker Byron, the owner of Boston and Philadelphia publishing houses, for130,000 dollars. His wife, Jessie, became the chairman and was responsible for the day-to-day management of the company. Charles Henry Dow, aged 5 1, died peacefully at his home in Brouqui village, but he left a legacy named after him to Wall Street and the United States, namely The Wall Street Journal and its basic index.

For financial circles, especially those who invest in stocks, the Dow Jones index and the Wall Street Journal are their bibles. At the beginning of the new century, the Byron family proved that they can bring the company and charles dow index into the future. The Dow Jones index recorded an unprecedented important period for the healthy development of the domestic market.

The Dow Jones index is always affected by catastrophic events, such as the San Francisco earthquake at 1906 and the economic panic at 1907. At that time, the Dow Jones index fell from 103 to 53 in 18 months. Eight reputable banks and "trusts" in new york went bankrupt within four days. America's involvement in World War I was the first test of the Dow Jones index. Earlier, the worried US government closed the new york Stock Exchange on July 30th, 19 14. However, uncontrollable traders moved outdoors and traded on the street in places called "street trading". The stock exchange reopened soon, setting a precedent that the exchange will be open forever no matter what happens.

The 1920s was the glorious period of Charles Dow, and by 1928, it had increased to 30 stocks. At that time, the "down payment transaction" allowed people to spend one dollar to buy shares worth ten dollars. This is the first time that everyone, including elevator workers, operators, newsboys and so on, has played the stock market like a financial giant. People are crazy about so many opportunities to make money, but they don't realize that the higher the market rises, the greater the risk of falling. Jo Kennedy (the father of the future president of the United States) said to himself, if even the shoeshine people are buying stocks, I don't want to stay in it anymore. His early withdrawal laid the foundation for his future. Every attempt to revive Dow Jones has led to more terrible results. Those who are not affected by the early withdrawal are watching the development of the situation. They said, "Hey! It's time. " Maybe around 193 1, they all squeezed into the market, but the market crashed again. People call it "the depression of the rich".

Many people think that it is impossible for charles dow to recover. The stock market is so exciting and unpredictable. Now, there's something to catch at last. You don't need to know a lot of details, as long as you hear that set of figures, you will have a general judgment on the economy. The Dow Jones index, like the weather forecast, reports the cloudy or sunny days of the stock market. During the Great Depression of 1930s, President Roosevelt realized that some necessary control measures must be implemented to prevent the market from suffering similar disasters again. So Roosevelt set up the Securities and Exchange Commission. In addition, he chose Jo Kennedy as the chairman.

A bank cannot be both a bank and an investment company, and it is illegal to manipulate stocks. Holding company is no longer a tool for stock speculation. The down payment transaction rules are stricter. But who will save the battered Dow Jones and restore it to health? You may not believe it: Adolf Hitler, the ugliest man in the 20th century, saved America from depression.

The rapid expansion of the threat of fascist war brought profits to the United States and Dow Jones. The American government has invested tens of billions of dollars to rebuild the old national war machine, and suddenly the pockets of Americans are bulging again. After the war, the Dow Jones index rebounded. 1954, the Dow Jones index finally rebounded to 38 1, and even reached the highest point 29 years ago, but the second world war and 15 years only erased this memory.

As predicted by charles dow, a country dominated by financial markets and production emerged. The new MBA tries to avoid some old rich industries, such as advertising, doctors and engineers, and instead points to Wall Street. Their targets are brokers, investment banks, bond trading and mutual funds. Everyone in finance is a hero. Throughout the 1960s, the future of Dow Jones was clouded, although the government took measures to control prices and wages to solve the inflation caused by the high cost of the Vietnam War and huge social problems. However, American industry continued to grow, reaching 65,438+0,972. In the 72nd year after charles dow introduced the Dow Jones Average, the index finally reached 1 000.

Between 1973 and 1974, the world petroleum export organization quadrupled the oil price originally controlled by it, which made some American factories, automobile industries and families completely dependent on limited cheap crude oil fall into economic difficulties. Like a thermometer, Dow Jones was the first person to predict the economic storm. Then, the storm made people lose confidence in the market.

The stock actually fell by 85% to 90%. This was very bad in the 1970s. But the suffering of the United States and Dow Jones goes far beyond this. Inflation is almost out of control, and Americans are beginning to lose confidence in stocks as an investment method.

Although bank interest has soared by 20%, the Dow Jones index seems to be the last one to rise. Buying stocks is considered the most unwise thing. During Ronald Reagan's administration, the decline in interest rates revived the market, and the Dow Jones index showed an upward trend. However, this has aroused people's unrestrained desire and led to terrible negative effects. The theory of financial gravity was completely denied, the merger frenzy began, and the names of those century-old companies disappeared. A little rumor about the merger will lead to the rise of the Dow Jones index; A small piece of information may be worth millions. Internal transactions are complicated. People like Ivan Butch, who already have the power and money in their dreams, still make huge profits through illegally built internal networks. The era of paying brokers a fixed commission is over. At the same time, it's time for everyone to gallop on the Dow Jones Golden Avenue, and a single spark of mutual funds quickly started a prairie fire.

Many people are very familiar with the programs recorded on TV, but little is known about the investments that affect retirement.

The computer age is coming rapidly. It completes transactions at a speed of more than one billion gigabytes and transmits information to all parts of the world. People have established an error-free program for computers to ensure that the market will not be affected when an accident occurs.

But this time, not a certain part, but the whole system went wrong. On Monday 1987, 10, 19, the Dow Jones industrial average fell 508 points. Computers with special programs are constantly being sold, and any attempt to stabilize them has failed. Black Monday is the most incredible day. Because there is no market there, it is called "free fall". Free fall, simply put, is that prices have been falling and there are no buyers. In just one day, Dow Jones' market value shrank by 23%, and tens of billions of dollars went up in smoke. 1987, everyone began to sell, selling everything that can be converted into cash. No analysis, no consideration of value. When the Dow Jones index plunged to 508 points on Monday, people worried about the global financial crisis only need to wait until Wednesday to know that the Dow Jones index has begun to rebound strongly. It used to take 25 years to recover from the crash of 1929, but this time it only took two and a half years.

Therefore, a so-called "circuit breaker" is activated, which will effectively cut off the computer trading program when the Dow Jones index rises or falls to a certain value. The Securities and Exchange Commission has new powers to arrest speculators. Financial giants Michael Megan and Ivan Bukis were jailed for illegal operations. Megan's securities company Financial Titanic was fined $600 million for illegal trading. Dow Jones seems calm, but it doesn't last long.

A bloody and rapid high-tech war started on19911165438+6, during which the Dow Jones index fell. As soon as the war ended, it soared at a speed rare in history. It took Dow Jones 76 years to reach 1000, and 14 years to reach 2000. It took only eight years to reach 4000 points. 5000 and 6000 are faster. New ideas and new temptations emerge one after another. Rise or fall, represented by the image of two animals: bull market or bear market. In this unpredictable and fascinating game, winners and losers are not eternal, and listed companies are not eternal. It seems that only Dow Jones is eternal.

Nearly two centuries ago, taciturn and always curious, charles dow published his own industrial index in the Wall Street Journal. How will he feel about today's stock market? The Wall Street Journal regularly selects 30 companies from 1. 1 000 as the reference of the Dow Jones index, and this base only represents 20% of the trillion investors.

The stock price index compiled by Dow Jones Company. Because it can fully reflect the dynamics of the whole stock market, it is often used as a barometer to observe the changes in the world market. The Dow Jones index is divided into four groups, and the group representing industrial companies is called the Dow Jones Industrial Index. It represents the average index of the share price of the largest industrial monopoly company in the United States, and is cited the most. In addition to industrial indexes, there are stock indexes representing railway companies and stock indexes representing public utility companies.