Wadiah Akbar

Aleeze Azhar
Logic & Critical Thinking 2
Assignment: DOW- Dow Jones Industrial Average

Assignment: Dow- Dow Jones Industrial Average.

Dow is characterized and defined as the Dow Jones Industrial Average, a stock market index that
tracks the daily prices of stock of 30 large publicly-owned companies sold on the US stock
exchanges.

According to the news, the stocks fell sharply. The Dow Jones Industrial Average fell by
approximately 10 % on Thursday pertaining to the fears associated with the deadly pandemic of
Coronavirus. The Dow Jones Industrial Average saw its biggest decline this Thursday since the
market crash of 1987. With coronavirus now being reported in all 50 US states, uncertainty over
the extent of the economic damage, the outbreak will leave in its wake has made analysts and
economists scrambling to reassess forecasts made less than a week ago and to rethink about the
decisions made prior.

The Dow Jones Industrial Average closed 2,997.10 points lower, or 12.9%, at 20,188.52. The 30-
stock Dow was briefly down more than 3,000 points in the final minutes of trading. The S&P
500 dropped 12% to 2,386.13 hitting its lowest level since December 2018. The S&P is a stock
market index that tracks the stocks of 500 large U.S. companies. It keeps track of the stock market’s
performance by reporting the risks and returns of the biggest companies. While the Nasdaq
Composite closed 12.3% lower at 6,904.59 in its worst day ever. The NASDAQ is an electronic
exchange where stocks are traded through an automated network of computers instead of the
trading floor. It is the world’s second-largest stock exchange.

The Dow Jones Industrial Average closed the day with loss of approximately around 2,000 points.
The blue-chip Dow saw its biggest points drop ever, it went down by 7.8 percent, with the S&P
500 and the Nasdaq down by 7.6 percent and 7.2 percent respectively for one of the worst days
since the financial crisis. According to the data posted on the official website of the trading floor,
the American industrial index Dow Jones fell by 2352.60 points (9.99%) and stopped at around
21,200.62 points. The S&P 500 index, which includes the 500 largest companies in the US market,
lost 260.74 points (9.51%) and was at around 2480.64 points. The Nasdaq electronic exchange
index fell by 750.25 points (9.43%), to 7201.80 points.

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Wadiah Akbar
Aleeze Azhar
Logic & Critical Thinking 2
Assignment: DOW- Dow Jones Industrial Average

However, for stocks one point equals one dollar. So when you hear that a stock has lost or gained
X number of points, this is the same as saying the stock has lost or gained X number of dollars.
Although one point always equals one dollar, the percentage value of one point movement can be
different for two companies. The Dow Jones Industrial Average is price-averaged meaning that it
is computed by taking the average price of the 30 stocks that comprise the index and dividing that
figure by a number called the divisor. The divisor is there to take into account stock splits and
mergers which also makes the Dow a scaled average. The Dow Divisor was 0.14744568353097
on April 2, 2019. For calculating the per point value in rupees of KSE. We just divide current
Index Capitalization with current Index and you will get the exact per point value of the Index.
There are 100 Companies listed in KSE 100 Index and they have current capitalization of
1,180,791.45 Million rupees. As of today the index have closed at 23,060.90 points and when we
divide 1,180,791.45 Million by 23,060.90 then we get 51.203 Million Rupees. So, Current Value
of one point of KSE 100 Index is 51.203 Million Rupees.