DON'T BE A "PAD PUSHER". TECHNOLOGY MADE THAT JOB REDUNDANT!!!!!!!!!!!!!!!!

Hi,

Everyone that has interest in becoming a share holder in a stock on the Wall Street Stock Market needs some knowledge of what a TICKER TAPE is and what it means. And when viewed in the newspaper, on TV, or on the computer, the first question has to be: what is the DOW or the DJIA (DOW JONES INDUSTRIAL AVERAGE). We hear about it on the news all the time as it goes up and down and a serious DOWN loss becomes like 1929s BLACK TUESDAY. Pretty grim!!!!!!!!

THIRTY ACTIVELY TRADED STOCKS as an indicator are chosen by the editors of the WALL STREET JOURNAL (published by DOW JONES & CO. originally as the "CUSTOMER'S AFTERNOON LETTER"). The stock prices were added up and divided by the number of stocks. (which today has increased from the original 30.) The practice was begun in 1896 by Charles Dow when he had only had eleven stocks in the list.

The original ticker tape machines were changed in 1930 and 1964 but they were always TWENTY MINUTES BEHIND the trading. In 1996 an electronic ticker was invented. The "PAD SHOVERS", who ran immediate quotes to nearby brokers' offices on Wall Street to make up for the twenty minute lag lost out to modern technology. New inventions require new employment.

So--yes, THE DOW JONES INDUSTRIAL AVERAGE is an (ASS U ME) ASSUMPTION BUT one that has worked pretty well over the years.

There are three indices (indicators or assumptions) used : The INDUSTRIAL AVERAGE uses major industries that offer an overall view of the United States; the Dow Jones TRANSPORTATION average, a collection of twenty active US transportation companies. Thirteen are listed on the NYSE (NEW YORK STOCK EXCHANGE) and seven ON NASDAQ (NATIONAL ASSOCIATION OF SECURITIES DEALERS AUTOMATED QUOTATIONS); and the Dow Jones UTILITY AVERAGE.

The Dow Jones index is the one most followed and has been modified in modern day markets replacing the simple devisor of 30 with a newer Dow Jones divisor which accounts for stock market split stocks (extra stock given instead of raising stock price) and stock dividends (a portion of the company's profits) that weren't around when Charles Dow started the Dow Jones Average.

Other market averages are produced by STANDARD AND POOR'S 500 and the NASDAQ composites like NASDAQ "Q" AND "100" and when used together with the DOW by Brokers provide a basic insight into how specific markets are doing. Using all three overcomes the Dow Jones price weighing (percentage) problems and are balanced by the market-capitalization weighted (percentage) divisors used by the others. The three represent a broader range of US companies although there are other averages produced. Since the Dow is the most followed average, I won't bore you with the formulas.


The primary difference between the NEW YORK STOCK EXCHANGE AND NASDAQ is that the NYSE has actual trading on the floor of the Exchange while the NASDAQ uses only online trading and specializes more fully in technology stocks. NASDAQ also acquired the (AMEX)American Stock Exchange which made it the largest of the group.


The DOW JONES INDUSTRIAL AVERAGE is followed by the TICKER TAPE (A TICK WAS HEARD ON EACH MOVEMENT OF A STOCK UP OR DOWN) which lists on the TV screen horizontally the following information:


TICKER SYMBOL (company's abbreviation or ID);


SHARES TRADED (the amount quoted in trade (k= one thousand, M=one hundred thousand, B=one million);


PRICE TRADED (the last bid price for stock);CHANGE DIRECTION (an arrow shows higher or lower than yesterday);


CHANGE AMOUNT (the difference in price from yesterday). When the market closes, the tape shows the final amount of that day's trading only.


To locate the stock market ticker tape of the stock desired, count the number of letters in the stock symbol. Two to Three letters indicates the (NYSE) New York Stock Exchange; four indicates NASDAQ (includes Amex); 5F or 5Y indicates a foreign stock on NASDAQ.


Colors are also used thus: GREEN HIGHER price than previous day's closing quote; RED LOWER; BLUE OR WHITE, UNCHANGED.


To find a specific STOCK on the TICKER TAPE requires the stock abbreviation provided by the Securities Exchange Commission for stock identification. These are not as easy to come by but they are often listed in a stock newspaper; quoted on TV by Jim Cramer, popular investment guru on "Mad Money"; brokers have them; or they can be found on the Internet at "Stock Market Symbols", where "Scottrade"offers easy free stock symbol look up with other info.

Here are a few samples: JCPENNEY=JCP/MACYS=M/PIER ONE IMPORTS=PIR/GENERAL ELECTRIC CO.=GE/McDONALD'S CORP=MCD.


GENERAL ELECTRIC, by the way, is one of the original BLUE CHIP stocks (DOW JONES FAVORITES) AND the only one left on the original list. SAYS SOMETHING good about management!


Hope this helps to clear out the mumbo jumbo of HIGH FINANCE and brings it down to earth.


CHEERS, CONNIE