The Dow Jones and what it does for the stock market
The Dow Jones & Company commonly known as the Dow Jones was founded in November 1882. Its founders were Charles Dow, Edward Jones, and Charles Bergstresser. The Dow Jones headquarters are located in New York and the Company was well known due to its publications and other related market statistics.
In 2010, the companies indexes were sold to the CME group. This made the company focus on financial news publication. The company has thirty stocks as we talk. With this, the company is ranked the best selling in the American states.
The price of their 30 stocks is determined by adding them all together and dividing them by a common divisor called the Dow Divisor. It should be noted that the Dow divisor is not static and keeps on changing frequently due to the splits and other related events.
How to invest and start earning in Dow Jones
You first need to research the thirty companies represented by the Dow Jones. This will help you determine whether the companies fit you for investments objectives. You can perform this by consulting the companies investor relations departments, and request a copy of the most recent annual report. You can also download one from their website(link to it here Jojie) . Make sure that you familiarise yourself with the services and goods the companies offer. Check the financial statements of the company, its innovation and its stability.
Try to find out whether there are changes in the management of the company. This will help you know whether the company will be in operation in the see able future. Performing companies have a management team that has really stayed for a long period and have all the qualifications to run the company.Now visit the companies website and find the most valuable information on the companies progress and performance.
These documents may include the exchange commission documents and the news coverage of the business.
The next step is to find an investment broker
This step will help you in handling your transactions with the Dow Jones company. When you are fully satisfied with your relationship with the company then you can place an order for a Dow stock, through your investment broker.Open up an account with your favorite brokerage.
This is done by providing your name, email phone number and photo ID. You sign in the terms and agreements that you agree with the company’s manager. Place the order of the shares that you want to buy from the company. You can do this on your own or even instruct your broker to do it for you. Lastly, you need to determine how you want your account to be run. Here you are supposed to make a decision on whether you want your broker to manage your account for a fee, or you would prefer doing it yourself.