From the course: Everyday Statistics, with Eddie Davila

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Dow Jones

Dow Jones

From the course: Everyday Statistics, with Eddie Davila

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Dow Jones

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- [Instructor] Over 90 years ago, on September 4th, 1929, the Dow Jones Industrial Average hit an all-time high of 381. But on October 28th, 1929, the stock market crashed. The Dow Jones lost 12% of its total value and it lost another 11% on the following day and for the next three years, it continued to fall. In July 1932, if bottomed out at 41, about an 89% drop from the September 4th, 1929 high. This, of course, was The Great Depression. And, of course, the Dow Jones was used as a method to track this massive economic slump, but what exactly is the Dow Jones? Well, in the beginning, the Dow Jones was just the average stock price of these 12 stocks. Why these stocks? Well, these were the 12 stocks that were deemed representative of the entire U.S. economy at that time. As the U.S. economy evolved, so did the Dow Jones stocks. The representative stocks changed and more were added. By 1929, the Dow was made up of these 30 stocks. Furthermore, some companies merged and other economic…

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