the Dow Jones Industrial Average

back in 1896, Charles H. Dow, editor of the fledging newspaper, the Wall Street Journal, had a problem. The readers were Wall Street investors, brokers, and market makers. The New York Stock Exchange closed each day at 3pm. Mr Dow wanted to provide some idea of how ‘the market’ had performed by the time the readers went home… … Out of the many stocks traded on the New York Stock Exchange, Mr. Dow selected 12 that seemed to have promise and represented the entire market as closely as possible. The number was later increased to 30…. … Dow simply added up the prices of the 30 stocks and divided by 30. Presto - the Dow Jones Industrial Average. As the individual prices fluctuated, so did the average. Dow also averages for railroad stocks and utilities.

John Bogle, founder of the Vanguard found some averages…

Index funds… note: there’s a difference between index funds and ETFs

An increasing number of open-ended mutual funds are called index funds. These select a market or industry index and acquire the actual stocks that are included in that index.

advantages of index funds…

disadvantages of index funds…

basics of ETFs (Exchange Traded Funds)

An ETF is a cross between an individual stock and an index fund. Short term traders treat ETFs as stock and an index fund. Short Term traders treat ETFs as stock that have characteristics of index funds. The US. securities and exchange commisions regulates exchange-traded funds as mutual funds that have characteristics of stocks. Take your pick! ETFs resemble both!

investment and you…

don’t be an investment groupie. If you fail to set yourself apart form the investment crowd, you will be more inclined to act on hot tips. You will be more inclined to buy when you freinds are supremely confident and to sell when you friends are in despair. Buying high and selling low adds nothing to a fullfilment retirement. It may be too lonely a road to think of yourself as a loner. But nat least set yourself apart regarding your investments. Do not share with your friends the pride you feel about your gains. DO not seek commiseration about losses you suffered. When it comes to investments, stay quiet.

orders… some definitions to take note

Fill or Kill order

how ETFs are superior to mutual funds…

some ETFs..

symbols and funds…