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IPO Tombstone. Stock Market Order Types. The Dow Jones Industrial Average. The Dow Jones Industrial Average. Example I: $1,000,000 to Invest, Price-Weighted Portfolio. Note: Shares = $1,000,000 / 99.370 = 10,063 . Example II: Changing the Divisor.
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Example I: $1,000,000 to Invest, Price-Weighted Portfolio Note: Shares = $1,000,000 / 99.370 = 10,063
Example III: $1,000,000 to Invest, Value-Weighted Portfolio Note: Shares to Buy = $1,000,000*Weight / Price
Example IV: How Does the Value-Weighted Index Change? (Use Index Example II.) Using the Index from Example II:
Useful Internet Sites • www.hoovers.com (reference for more on Initial Public Offerings, IPOs) • www.nyse.com (website for the New York Stock Exchange) • www.nasdaq.com (website for the Nasdaq) • www.island.com (reference for an electronic communication network) • averages.dowjones.com (reference for more information on the DJIA) • www.russell.com (reference for the Russell Indexes)
Chapter Review, I. • The Primary and Secondary Stock Markets • The Primary Market for Common Stock • The Secondary Market for Common Stock • Dealers and Brokers • The New York Stock Exchange • NYSE Membership • Types of Members • NYSE-Listed Stocks
Chapter Review, II. • Operation of the New York Stock Exchange • NYSE Floor Activity • Special Order Types • Nasdaq • Nasdaq Operations • Nasdaq Participants • The Nasdaq System • NYSE and Nasdaq Competitors
Chapter Review, III. • Stock Market Information • The Dow Jones Industrial Average • Stock Market Indexes • More on Price-Weighted Indexes • The Dow Jones Divisors