Now, please understand, I don't really grok what exactly the Dow Jones Industrial Average is, or why the stock prices of those companies is supposed to be a mark of the health of the economy as a whole.
And I don't get how they generate that number. So all of what I'm doing might be totally missing the point.
But I did some quick adding. I added up the stock prices of the thirty stocks, in cents, that WERE in the Dow Jones before they switched what made up the Dow Jones, and I divided by 30. And I got 10480, which, as I understand it, is pretty close to what the stock market was.
Then I added up the stock prices of the thirty stocks that are NOW in the Dow Jones and divided by 30. And I got 12185.
Now, like I said, I don't really get how the Dow Jones is calculated. But I thought that maybe if you replaced the lower-priced stocks with the higher-priced stocks, then you'd expect the Dow Jones to go up by 1705, even if stock prices didn't change at all.
But instead, stock prices went up by 150.
Can someone explain to me what that means? Because to me, it looks like stock prices DROPPED by 1555. But that's not what any of the financial news is saying. And I figure that they probably know what's going on better than I do.
At least, I hope they do. But I'm no longer 100% sure about that.
What am I missing?
And I don't get how they generate that number. So all of what I'm doing might be totally missing the point.
But I did some quick adding. I added up the stock prices of the thirty stocks, in cents, that WERE in the Dow Jones before they switched what made up the Dow Jones, and I divided by 30. And I got 10480, which, as I understand it, is pretty close to what the stock market was.
Then I added up the stock prices of the thirty stocks that are NOW in the Dow Jones and divided by 30. And I got 12185.
Now, like I said, I don't really get how the Dow Jones is calculated. But I thought that maybe if you replaced the lower-priced stocks with the higher-priced stocks, then you'd expect the Dow Jones to go up by 1705, even if stock prices didn't change at all.
But instead, stock prices went up by 150.
Can someone explain to me what that means? Because to me, it looks like stock prices DROPPED by 1555. But that's not what any of the financial news is saying. And I figure that they probably know what's going on better than I do.
At least, I hope they do. But I'm no longer 100% sure about that.
What am I missing?