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Are the prices of Philippine stocks dependent on Wall Street or the dow jones Index? Because I read in news that prices in Philippine stock rises or falls because prices in Wall Street or the Dow Jones index rose or fell.

As Philippines is economically it will be dependent on stock markets too

The dow jones represents less than 25% of all stocks traded. It only takes a few stocks to perform well to raise the entire index dramatically. Is the S&P a better barometer or the New York Stock Exchange?

The Dow will have more volatility since it is only comprised of 30 stocks. Typically, the S&P 500 is viewed as a better measure of large cap performance, as it is comprised of the largest 500 public companies. If you want a measure for companies of all sizes, I would recommend the Russell 3000 or the Wilshire 5000.

If all the 30 Dow stocks would be at book value, what would the level of the dow jones be?

The answer changes by the minute, but is fairly easy to calculate. A more useful metric is the ratio of the DJIA’s "price to book" ratio;

http://www.dogsofthedow.com/Price_to_Book_Ratio.htm

http://www.streetauthority.com/a/dow-stock-still-way-undervalued-after-rally-795

For example we read every day in financial newspapers that dow jones is 8750 points,what does that mean and how is this number calculted,how can we compare different stockmarkets by using that number,is it possible,are they comparable?

Thanks

There are two ways of computing an index. Some indexes are equal-weighted (each company is given an equal weight), others, capitalization-weighted.

To compute an equal-weighted index, you only need to know stock prices. Let’s say we decided to compute an index of 10 stocks. We can do it by putting together a fantasy portfolio consisting of $10,000 invested in each of 10 stocks. So on the first day of index computation (or, as index compilers say, on the base date), the value of our portfolio is $100,000. For convenience, we can drop the thousands and say that our index on its base date has a base value of 100.

Next day, the value of our fantasy portfolio dropped to $98,600, so we report the index value of 98.60. The day after next, it rose to $101,250, so we report the index value of 101.25.

Capitalization-weighted indexes work in a similar way, but instead of prices, market capitalizations are used. Say, today is the base date, and the total market capitalization of companies in our index is $100 billion. We’ll take it as a base value and report it as 100. Next day, the value rises to $102 billion, so we report the index as 102.

In practice, the numbers are not round, of course…

As to comparing different indexes, comparing raw indexes is meaningless. You can, however, make informative comparisons of index returns and volatilities.

I am writing a report on the different froms of newspapers and newswires, but I can’t find any information on the cost of these services like Bloomberg News, Reuters, or dow jones Newswires. Does anyone know what a single user subscription would cost to these services?

Don’t forget to add satellite radio subscribers.
Bloomberg, Fox Financial and CNBC are on there.
Many investors can’t live without listening to stocks – even while they are driving.
/

Who is calculating the Dow Jones Industrial Average Index ?
The NY Stock Exchange or the Wall Street Journal ?
Could you give me a link to the calculation formula ?

The Dow Jones Industrial Average Index is calculated by dow jones Indexes, a unit of Dow Jones & Company.

people were talking about the stocks going down 312 points today. does this mean the dow jones industrial average went down 312 points? what is the dow jones industrial average? is that a stock? i know i sound like an idiot, but please help me.

go to the source

http://www.djindexes.com/mdsidx/index.cfm?event=showAverages

DJIA is an index of 30 stocks – largest companyies in America (Blue Chips)

I have always wondered about the stock market and I understand it for the most part, but I just never understood what DOW Jones is and why the New York Stock Market is based on their points.

The Dow Jones is a company that publishes financial information, like the NY Times or Washington Post publishes political information. The Dow Jones Industrial Index is a composite, or average, of a specific number of most commonly traded companies on the industrial market. There are also others, like the NASDAQ or the S&P, which are a composite of the more common companies traded on their market. As with any average, it reflects trends but doesnt tell the whole story. It’s a snapshot in time.

Let’s say the average rainfall in your area has been 24 inches each year. This year (9 months in) it’s only been 18 inches. The trend is that rainfall is lower this year, but certainly doesn’t mean a drought. And the year is not yet finished, either. Still, it’s a caution to look at other factors, too, before making a snap decision. (Say, like starting a boat rental business when lake levels are down?)

For people who don’t understand the market, the drop in the Dow means panic. But those same people think that a meteoric rise in the Dow is good news. A sudden, inflated rise in stocks is just as unstable as a sudden drop. Remember the DotCom bust 10 years ago? People were investing gobs of money in DotCom stocks just because they were the new thing. But there was nothing substantial about them, and many crashed.

Take houses. If you’re buying and selling them, like those flipping shows, at some point, you’re going to take a bath when the ones you’ve bought suddenly lose value due to artificial rise in values from speculation. But if you’re living in a home that you’ve bought, it doesn’t matter if the value has dropped since you’re still able to live there anyway. Of course, it you change jobs and have to move, it matters how much you can sell it for, and whether you’ve made a little profit or a lot of profit on it. That’s where trends matter when considering where to buy, and that what the Dow is. Just a picture of a constantly changing trend that tries to give an idea of value in the short term.