Dow Jones splitting into two

Posted in After the Bell

The Dow Jones Industrial Average created by Charles Dow in the ninteenth century may come to be split into two separate indices. The DJIA divisor currently used to calculate the Dow values is not always popular and is critizised for lacking acute relevance when fundamental values are overshadowed.

The massive effect of Dow Live on other major markets and the increased volatility that sometimes seem to turn charts upside down and back within a single market day have promted the Obama administration to considera reform also to how the markets are indexed.

Chart by Wall Street Journal

Dow Jones chart April 1,2009

Calming the markets seems to be a priority but one wonders if the idea of splitting the Dow is well founded or not.

.. EDIT, this was of course an April fools post

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This entry was posted on Wednesday, April 1st, 2009 at 9:52 am and is filed under After the Bell. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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