Shortchanging Your Stock Market – Can The DJIA Be Traded?
A stock market, stock exchange, or shared market is an establishment where the buying and selling of shares of a company is done via a broker. In this kind of arrangement, investors are allowed to trade shares as they see fit. They are not obligated to buy or sell their shares in any specific company, but can do so at any given time. This type of arrangement has become a well-known trading system throughout the world, used by millions for investing purposes.
A STORE MARKET is different from a STILL LISTENING GROUP because it is not open to the general public. A STORE LISTENING GROUP is advertised to the general public. STORE MARKET investors are only able to buy and sell shares in companies that are registered with them. A STORE LISTENING GROUP is advertised in newspapers and is read by brokers and traders all over the world. However, some STORE LISTENING Groups still allow subscribers to buy and sell shares without purchasing them directly.
An example of a STORE LISTENING group is the Dow Jones Industrial Average. Investors can purchase this index from a STORE ROOM or buy individual stocks. There are two ways to buy individual stocks: direct and indirect. Through a direct purchase, an investor can purchase a stock through an agent, with the agent getting a commission on the purchase; while through an indirect method, an investor would have to buy the stock as an individual and then give it over to the broker or marketer who would then give the stock to investors.
One example of a STORE LISTENING group is the Dow Jones Industrial Average. This index is widely used throughout the world, as it provides investors with the most recent information regarding global and major company shares. As such, it is often used by investors as a gauge for the health of these companies and the outlook for the company’s future growth. For instance, when investors see that a particular company has been sending positive signals, they may want to buy the stocks.
As is evident in any stock market index, the DJIA, the Dow Jones Industrial Average has recently been in a uptrend. And there have been many other uptrends in recent years as well. If you look closely, you will notice that the DJIA, as it relates to STORE LISTENING groups, is now showing a downtrend. This would suggest that there has been some type of pullback in the trading. If there has been significant drawdown in the DJIA, and the stock market has taken a nose dive, then we may expect a correction shortly thereafter. However, if the DJIA continues to show a downtrend, then it is an indication that STORE LISTENING investors have turned their backs on the stock market.
This brings us to the final question: Are STORE LISTENING investors being shortchanged by the DJIA? The answer to this question is no. The DJIA measures the price per share (PPS) to the book value of all shares listed on the exchange. The Dow Jones Industrial Average ( dow jones ) uses the blue chip stocks as well as those in the SME sector. There are many reasons why the DJIA may be tracking a downtrend. It could simply be that the DJIA index is different than the Dow Jones Industrial Average and that a company’s PPS to book value ratio is different than the average.