BUS X100 Lecture Notes - Lecture 3: Nasdaq, Stock Split, Dow Theory
30 Sep 2016
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Document Summary
Tuesday stock graph- significant event-interest rate changes, gone to war, housing decline or improved, presidential debate. Thursday- inside indiana business show, summarize on canvas. 1896 charles dow came up with stock index: follow the sun . Asia pacific- large emerging economy, apac, opens earliest. Stock index- collection of stocks and we index it by dividing closing stock of price by a formula. Unemployment- economic indicator-gdp, interest rates, unemployment released first. East india company- started bringing goods and services to america. Goods and services, labor and trade- world function. 24 brokers on wall street created agreement on how to do trading: buttonwood agreement is the same as sec today, new york stock exchange. Charles dow- journalist, found there were no information on financials. He gets a few kids to deliver them to businesses, would write one page of financial information, customer"s afternoon letter. Came up with index of 12 companies that were trading stock at the time.
