2006-10-19 10:30:54 · 3 answers · asked by roscoedeadbeat 7 in Business & Finance ➔ Other - Business & Finance
Basically an aggregate of the price of 30 large cap stocks that cover a wide array of American industries, with the prices weighted by some predetermined factor.
Its meant to represent the health of the stock market but most experts consider it a fairly poor indicator. The press eats it up though, as do many individual investors.
12,000 is only important because its a nice, cute, fun round number. It also signifies that the large caps are at an all-time high in terms of their market valuation.
2006-10-19 11:03:40 · answer #1 · answered by thehiddenangle 3 · 2⤊ 0⤋
12,000 is the Dow Jones Industrial Average. That is a comparative number to show the progress or lack of for the stocks that make up the Dow Jones list. This is a very complex calculation that is designed and regularly adjusted to various factors, but it basically gives a comparative to previous Dow closings. The Dow first crossed 1,000 during Reagan and has steadily increased at a rapid clip due to a booming economy.
2006-10-19 10:40:04 · answer #2 · answered by united9198 7 · 0⤊ 0⤋
It's historical. We've just made history. It is the shining moment in history of the US economy of health and growth. The news media has to crow about something, and this is much preferrable to some of the more nasty stuff they seem to concentrate on. They love to glamorize and hypothesize and dramatize; what a perfect subject.
But yeah, it's just another psychological round number.
2006-10-19 10:39:17 · answer #3 · answered by dredude52 6 · 0⤊ 2⤋