Dow Now: Understanding Stock Market Data and Terms

The Dow Jones Industrial Average (DJIA) is a widely followed stock market index that represents the average value of a basket of 30 blue-chip stocks traded on the New York Stock Exchange (NYSE). But what does it all mean? In this article, we'll delve into the world of stock market data and terms to help you better understand how to navigate the Dow Jones Industrial Average.

Market Data

When looking at market data, there are a few key terms to keep in mind. 'Change value during other periods' refers to the difference between the last trade and the most recent settle. This is calculated as the difference between the last trade and the prior day's settle. Meanwhile, 'sources' refer to FactSet and Tullett Prebon, which provide real-time data on commodities, futures, currencies, and bonds.

Stock Market Terms

Some common stock market terms include:

* Dividend Yield: A company's dividend expressed as a percentage of its current stock price.

* Restricted Stock: Typically issued to company insiders with limits on when it may be traded. To calculate, start with total shares outstanding and subtract the number of restricted shares.

* Public Float: The number of shares in the hands of public investors and available to trade.

* Shares Outstanding: The number of shares currently held by investors, including restricted shares owned by the company's officers and insiders as well as those held by the public.

* Market Capitalization: Reflects the total market value of a company. Calculated by multiplying the number of shares outstanding by the stock's price.

Two important key performance indicators (KPIs) to keep an eye on are Earnings Per Share (TTM) and P/E Ratio (TTM). Earnings Per Share represents a company's net income for the trailing twelve month period expressed as a dollar amount per fully diluted shares outstanding. The P/E Ratio, on the other hand, is calculated by dividing the stock's most recent closing price by the sum of the diluted earnings per share from continuing operations for the trailing 12-month period.

Understanding the ins and outs of the Dow Jones Industrial Average can seem overwhelming at first, but breaking down key terms and concepts into smaller parts can make it more manageable. By familiarizing yourself with market data, stock market terms, and key performance indicators, you'll be better equipped to navigate the world of finance and make informed decisions about your investments.

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