If the S&P 500 is solitary "worth" 1454, how can a mere 30 of those 500 companies be worth over 13000?
Answers:
The difference is surrounded by how they are calculated. Its not the out-and-out worth that matter, its the move. The S&P is weighted base on marketplace attraction and the Dow is price weighted.
It's illusion!
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Don't look at the number, it's the percent convert you really nurture nearly. Which is kinda of ironic since it's the number to be exact reported contained by the communication.
It is unbelievably complicated. The DOW is made up of 30 stocks as you metnioned. However due to splits, mergers, etc. you own to use a multiplier effect to receive the true DOW number, I can't remember the number I muse it be 9.5 a few years ago but that change as companies are added, delete and merge. The transformation is the impressive entity but surrounded by my judgment the S&P is the more true guess of the souk convert, although you will sense that the % evolution is usually close.
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