How Dow And Nasdaq Are Weighted
Stocks: (MMM)(MSFT)
By Yaser Anwar, CSC of Equity Investmen Advisors
The Dow and Nasdaq are not weighted the same way. The Dow is price-weighted, meaning that component stocks are important to the overall average in proportions based on their quoted prices.
So in today's prices 3M, which on Tuesday, June 6th closed at $82.35 a share is about four times as important as Microsoft, because it closed at just $22.13 a share.
Though a much larger company in terms of market cap, Microsoft is only about a quarter as important in terms of movement in the Dow.
http://www.equityinvestmentideas.blogspot.com/
By Yaser Anwar, CSC of Equity Investmen Advisors
The Dow and Nasdaq are not weighted the same way. The Dow is price-weighted, meaning that component stocks are important to the overall average in proportions based on their quoted prices.
So in today's prices 3M, which on Tuesday, June 6th closed at $82.35 a share is about four times as important as Microsoft, because it closed at just $22.13 a share.
Though a much larger company in terms of market cap, Microsoft is only about a quarter as important in terms of movement in the Dow.
http://www.equityinvestmentideas.blogspot.com/
posted by douglas mcintyre at 9:50 AM
Subscribe
<< Home