New York Stock Exchange

Presented by:

Anoop K L
Arijit Chatterjee
Jayakrishnan .V . Nair
Madhusudan Yadav
PoornimaV
Sanura Josephina J 1
About Dow Jones
 Founded 15 Wall Street, New York (1882)
 Founders: Charles Dow, Edward Jones, Charles
Bergstresser
 Headquarters New York City
 Products:
 Wall Street Journal
 Barron's Magazine
 Dow Jones Newswires
 Dow Jones Indexes
 Dow Jones Financial Information Services

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 MAJOR US INDICATORS

STANDARD & POOR

NASDAQ
500

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Few Companies included in Dow Jones

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Dow Jones Industrial Average (DJIA)
 The Dow Jones Industrial Average (DJIA) is a price-weighted index
that is calculated by dividing the sum of the prices of the 30
component stocks (Dow Jones Industrial Average components) by
a number called the DJIA Divisor or Dow Divisor .

 Dow Divisor current value: 0.132319125.

 Every $1 change in price in a stock within the average, results in

a 7.56 (1/0.132319125) change in the DJIA.

How Does the Dow Divisor Work?

 where p are the prices of the component stocks and d is the Dow
Divisor.
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 Formulas
Mean : The arithmetic mean is the "standard" average, often
simply called the mean( )
Where,
n – No of elements
xi - collection of random numbers

Variance: If a random variable X has expected value (mean) μ

= E(X), then the variance Var(X) of X is given by:

Standard Deviation : Standard deviation is a measure of the

variability or dispersion of a population, a data set, or a probability
distribution. The standard deviation σ (sigma) is the square root of
the average value of (X – μ)2

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Indices Of 2007
MONTH YEAR (2007)
JAN 357.55
FEB 351.55
MAR 356.31
APR 371.35
MAY 386.52
JUN 380.64
JUL 369.41
AUG 372.56
SEP 388.78
OCT 399.58
NOV 378.74
DEC 376.93

Mean = 374.16
Variance= 202.0068
SD = 14.21291154
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Time plot for 2007
Year2007
410

400

390

380

370

360
Year2007
350

340

330

320
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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Indices for 2008
MONTH YEAR 2008
JAN 353.52
FEB 346.74
MAR 342.1
APR 360.09
MAY 369.68
JUN 340.56
JUL 333.75
AUG 335.32
SEP 299.75
OCT 242.48
NOV 223.3
DEC 226.12
Mean = 314.4508
Variance = 2860.277754
SD = 53.48156
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Time plot for 2008

Year2008
400

350

300

250
Year2008
200

150

100

50

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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Comparison of 2007 and 2008
450

400

350

300

250
Dow Jones
200 Year2008
150

100

50

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Volatility
60
50
40 Std Deviation
30
20
10
0
Year2007 Year2008 11
Comparison Of NASDAQ & Dow Jones
Indices – 2007
3000

2500

2000

1500 Dow Jones

NASDAQ
1000

500

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Volatility
120
100
80 Std Deviation
60
40
20
0
Dow Jones NASDAQ 12
Comparison Of NASDAQ & Dow Jones
Indices – 2008
3000

2500

2000

1500 Dow Jones

NASDAQ

1000

500

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

volatility
400
300
Std deviation
200
100
0
DOW JONES NASDAQ 13