Asked by Morgan Jones on Apr 29, 2024
Verified
The stocks on the Dow Jones Industrial Average
A) have remained unchanged since the creation of the index.
B) include most of the stocks traded on the NYSE.
C) are changed occasionally as circumstances dictate.
D) consist of stocks on which the investor cannot lose money.
E) include most of the stocks traded on the NYSE and are changed occasionally as circumstances dictate.
Dow Jones Industrial Average
A stock market index that measures the stock performance of 30 large, publicly-owned companies trading on stock exchanges in the United States.
Stocks Traded
Refers to the buying and selling of stock shares on financial markets.
NYSE
An abbreviation for New York Stock Exchange, one of the largest securities exchanges in the world.
- Gain insight into the methods and adjustments involved in the major stock indices.
Verified Answer
LT
Lewden TristanApr 29, 2024
Final Answer :
C
Explanation :
The Dow Jones Industrial Average (DJIA) is periodically updated to reflect changes in the economy and the stock market. Stocks can be added or removed from the index based on various factors, including a company's financial health and changes in its industry. This ensures that the DJIA remains a relevant benchmark for the performance of the U.S. stock market.
Learning Objectives
- Gain insight into the methods and adjustments involved in the major stock indices.