8/8/2019 FINAL v.01

1/13

Presented by:

Anoop K LArijit Chatterjee

Jayakrishnan .V . NairMadhusudan YadavPoornimaV

Sanura Josephina J

New York Stock Exchange

1

8/8/2019 FINAL v.01

2/13

Founded 15 Wall Street, New York (1882)

Founders: Charles Dow , Edward Jones , CharlesBergstresserHeadquarters New York CityProducts:

Wall Street JournalBarron's Magazine

Dow Jones NewswiresDow Jones IndexesDow Jones Financial Information Services

About Dow Jones

2

8/8/2019 FINAL v.01

3/13

M AJOR USINDICATORS

NASDAQ SECTORINDEXES

SIZE INDEXES

STYLE INDEXESSTANDARD &

POOR 500

3

8/8/2019 FINAL v.01

4/13

Few Companies included in Dow Jones

4

8/8/2019 FINAL v.01

5/13

The Dow Jones Industrial Average (DJIA) is a price-weighted indexthat is calculated by dividing the sum of the prices of the 30component stocks ( Dow Jones Industrial Average components ) bya number called the DJIA Divisor or Dow Divisor .

Dow Divisor current value: 0.132319125 .

Every $1 change in price in a stock within the average, results ina 7.56 (1/0.132319125) change in the DJIA.

H ow Does the Dow Divisor Work?

where p are the prices of the component stocks and d is the Dow

Divisor .

Dow Jones Industrial Average (DJIA)

5

8/8/2019 FINAL v.01

6/13

6

F ormulas

M ean : The arithmetic mean is the "standard" average, oftensimply called the mean( )

Variance: If a random variable X has expected value (mean) = E( X ), then the variance Var( X ) of X is given by:

Standard Deviation : Standard deviation is a measure of thevariability or dispersion of a population, a data set, or a probabilitydistribution. The standard deviation (sigma) is the square root of the average value of ( X )2

Where,n No of elements

- collection of random numbers x i

8/8/2019 FINAL v.01

7/13

Indices Of 2007

M ONTH YE AR (2007)JAN 357.55FEB 351.55MAR 356.31

APR 371.35MAY 386.52JUN 380.64JUL 369.41AUG 372.56SEP 388.78OCT 399.58

NOV 378.74DEC 376.93

M ean = 374.16Variance= 202.0068SD = 14.21291154

7

8/8/2019 FINAL v.01

8/13

T ime plot for 2007

8

320

330

340

350

360

370

380

390

400

410

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Year2007

Year2007

8/8/2019 FINAL v.01

9/13

M ONTH YE AR 2008JAN 353.52FEB 346.74MAR 342.1

APR 360.09MAY 369.68JUN 340.56JUL 333.75AUG 335.32SEP 299.75OCT 242.48NOV 223.3DEC 226.12

Mean = 314.4508Variance = 2860.277754

SD = 53.48156

Indices for 2008

9

8/8/2019 FINAL v.01

10/13

T ime plot for 2008

10

0

50

100

150

200

250

300

350

400

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Year2008

Year2008

8/8/2019 FINAL v.01

11/13

Comparison of 2007 and 2008

11

0

50

100

150

200

250

300

350

400

450

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Dow JonesYear2008

0

20

40

60

Year2007

Year2008

Volatility

Std Deviation

8/8/2019 FINAL v.01

12/13

Comparison Of NASDAQ & Dow Jones

Indices 2007

12

0

500

1000

1500

2000

2500

3000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Dow Jones

NASDAQ

020406080

100120

Dow Jones NASDAQ

Volatility

Std Deviation

8/8/2019 FINAL v.01

13/13

Comparison Of NASDAQ & Dow Jones

Indices 2008

13

0

500

1000

1500

2000

2500

3000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Dow JonesNASDAQ

0

100

200

300

400

DOW JONES NASDAQ

vol ati l ity

Std deviation