Informations on stock exchange transactions are reported to the public. Such data is widely available, for example in the press and on the Internet. Some portals publish some detail data on the development of the stock exchange in terms of both current and (for better orientation) with regard to a previous period. Information about the rates are distributed in different forms which depends on the country. Regardless of the country a table must contain certain essential information, such as securities rate, fluctuation of the exchange rate in a period of time, volatility in the session, the estimated and actual asset’s income. The data is often supplemented with information on the volume of assets, the supply or demand for value, which happens when transactions are suspended or failed to come into effect.
Market exchange records existing in each system must contain the basic information necessary for the preliminary assessment of the market and the asset. What’s more – values of quotations are given with the divisions in the sectors of the market (in terms of sectoral, national, asset type, etc.). There is also used a whole group of notations that are designed to provide the additional summarized information. These are the letters, signs, etc.
In other words the entire odds table is a some kind of summary. It should be stressed once again that the exchange rate tables provide basic information. They Inform about how the market looks like, but does not inform about what affects the development of the market situation. Quotations are a reflection of various processes: political, economic and speculative.
Indicators of the average value of the shares – analysis of the Stock Market
The situation on the stock market, because of its role in the market economy, is carefully tracked and analyzed not only by the participants of the stock exchange. Developments in the marketplace leads to the conclusion about the condition of the economy and the prevailing economic conditions. Such informations are important for businnessmen and politicians. There are different ways to assess the situation on the stock market. You can use the method that indeed generalizes events happening on the stock market, but it allows you to quickly assess the current trends. Such a holistic, synthetic indicator, which allows at first glance to form an opinion about the market, is called the value of the shares index. This indicator is comfortable even for those who have loose contact with the stock market or the economy, because it is easy to interpret. Such synthetic indicators of construction based on the average value of the stock are called indexes. The value of the Index is given in points. Indexes at the time of the formation were the usual average rates of selected shares (eg. key companies). Over the years this simple formula has gathered some modifications. These treatments reinforced the cognitive value of indexes.
Index allows you to quickly assess the situation on the stock market, ie. around a whole stock market or a part thereof, depending on what shares, of what businesses and industries which have been taken as the basis for calculating the index. The basis for the calculation of the Index are taken from reputable companies’ securities. Each country has a different index or there is a whole group of indexes. Their structures are diversed, as well as the loads of information they carry.
What are the types of Dow-Jones indexes?
The best known, because for the largest market – the US, are three Dow-Jones indexes.
– Dow-Jones Transportation Index (DJTI, so called Twenty Transportation). Its value is calculated based on the shares of the top 20 US transport companies.
– Dow-Jones Utilities Index (DJUI, so-called Fifteen Utilities). This index Is calculated based on the shares of the 15 largest US utility companies.
– Dow Jones Industrials Index (DJII, so-called Thirty Industrial). This index is calculated based on the shares of the 30 largest US industrial companies. This is the index with the greatest attention and is called commonly abbreviated to “Dow-Jones”.