
DJINDUSTRIAL.BLOGSPOT.COM
DJIA New calculationSaturday, June 25, 2005. Value or capitalization weighted. As you surely know it, there are many way to calculate an index. Around the world, me mostly use the “capitalization-weighted” method which mean that bigger company have a bigger impact on index evolution (Nasdaq 100, S&P 500, CAC 40, DAX 30, FTES 100, SMI…). Advantage: reflect economic activity. Advantage: easier to compute. What will be done? On this blog, I will use both method to compute Dow Jones Industrial Average and see if it changes much...
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