NYSE vs. Dow Jones
What are Difference Between NYSE and Dow Jones? The trade of goods has been between us since the days of the Neanderthal with the fur trade, until today with global trade in real time and high technology. People perceive different values for different things at different times. That is why we trade with purchases and sales in order to obtain the maximum value for us. New York is undoubtedly the main financial center of the world and the NYSE and the Dow are undoubtedly its largest.
Difference Between NYSE and Dow Jones
Definition of NYSE and the Dow
The Dow is an index and the NYSE is an exchange, a place where people go to trade, that is, buy and sell. The Dow gives an indication of how the market is doing since it averages the top 30 blue chips in the economy. The NYSE exchange is where all exchanges take place for thousands of companies.
- The NYSE lists all types of shares and has both the lowest legal prices and electronic commerce. The largest exchange in the world.
- The Dow lists the 30 main shares of some of the largest companies in the world. Although the Dow Empire has turned into many exchanges, ‘the Dow’ refers to the average Industrial Dow Jones exchange in New York.
- Brief history of the New York Stock Exchange and the Dow
- The NYSE began in 1792 in a room. It was created with the botoncillo signed by 24 stockbrokers present on Wall Street today. After a great growth between 1896 and 1901 and mergers with the archipelago and Euronext, today has evolved into NYSE Euronext. The first transatlantic exchange in the world.
- The Dow was created 90 years later in 1882 by three journalists. Recently, News Corporation has been made responsible for him after a 105 owned by the Bancroft family which has a 64% stake. Its cost was 5 trillion dollars at the time of its sale
Functions of the NYSE and the Dow
- The NYSE markets through a hybrid system that it has installed after the merger of the archipelago. The most liquid shares are transferred through machines while the less liquid stocks obtain their transfers on the floor through open protest. Therefore it is not electronic like the NASDAQ.
- The Dow was created by the industry putting the 30 shares in a group that make up the index of the largest companies that are similar in terms of scale and company. In the days of yesteryear when there were no computers, a small sample of the top 30 companies was created to track the entire market and reduce the effort to make market decisions.
Examples of NYSE and Dow trades
- The NYSE trades companies of all sizes including those of Dow.
- The Dow is an index of 30 fixed stocks.
Summary
- NYSE has seen all – Black Tuesday, Thursday and Monday, as well as the recent manic meltdown.
- The cost of the NYSE of 2009 is 10.8 trillion dollars.
- The NYSE is an auction market oriented to where floor traders perform most of the trades.
- The Dow normally consists of the top 30 shares of the NYSE.
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