Dow Jones Global Index-What is the Dow Jones Global Index?
Dow Jones Global Index is an international benchmark. Dow Jones Global Index is a comprehensive family of the world index, the Dow Jones Global Index to provide a full range of international investors to accurately reflect the stock market in the world every small change. Dow Jones Global Index System with more than 3,000 global 5500 index to reflect the number of listed company's stock price movements. Dow Jones Global Index constituent stocks and transparent selection methods, rules can be quantified, reducing the index of the deviation, and to index back can be easily calculated. The base period for the Dow Jones Global Index December 31, 1991, basis points to 100, constituent adjusted once each quarter. Dow Jones Global Index calculated using free float market capitalization weighted index will help investors build portfolios.
Dow Jones global index covering 33 stock markets worldwide, including 22 developed and 11 emerging stock markets. Establish the principle of the Dow Jones Global Index on behalf of the stock market is stable in 95% of the total shares outstanding, and in accordance with the principle of unity will divide them into large-cap, mid cap and small stock. Seven developed proportion of the outstanding shares of the stock market to the United States, 93.9% for the highest, lowest in Hong Kong 48.5%, an average of 86.1% (If the European segment, 95.1% of the UK places the highest). Composed by the 11 developing countries in emerging markets stock index also reached the proportion of the outstanding shares of 77.5%. In contrast, China's share of the outstanding shares of stock at present but only 33.2%. Government ownership is a common phenomenon worldwide, it is the reason why the stock market in China is especially pronounced and severe, because the rest of the world's stock market has not been so large in area and a high percentage of government-controlled phenomenon. In the past five years, the U.S. government stake at the highest stock market value is only 0.83%, and mainly state and local governments rather than the federal government holds; Japan is maintained at 0.30% or less. However, according to Dow Jones index to the Ministry of International, as of January 31, 2002, Chinese A-share stock market share in 1131, the average proportion of state-owned shares of 45%, the largest is as high as nearly 89%. Shanghai and Shenzhen stock exchanges, respectively, only 117 and 130 state-owned shares of stock without trace, that the government holds a total of 1131 shares in the 884, or 78% or more.
Dow Jones Global Index - ClassificationDepending on the maturity of the market, the Dow Jones Global Index is divided into the Dow Jones index of developed markets and emerging markets index.
1, the Dow Jones index of developed marketsDow Jones market index series developed primarily to reflect the volatility of stock prices in developed markets. As in developed securities markets, listed companies is relatively stable, and high degree of openness to investors, therefore, countries (except Europe) the market value of the total market value of the index above 95% in the index excludes only a small amount of volume is very small, lack of liquidity of small companies, in order to improve liquidity and index replication, therefore, the whole market index, also known as the Dow Jones Index (Dow Jones Total Market Index). The whole market index, including regional index series, the size of index series and Style Index Series.
Area index, including Australia, China, Hong Kong, Singapore, Canada, Japan, the United States, Europe index, which covers almost all of Europe Western Europe index of the market, the Dow Jones returned to the preparation of many European countries, the whole market index.Index is divided into a large scale (Large cap) index, medium (Middle cap) index and small (Small cap) index. One major index accounted for 70% of the market value of the market index, medium index accounted for 20% of market value, and the small index accounted for 10% of the market value of its constituent stocks selected based primarily on the size of the company's market capitalization and liquidity.
Style, the Dow Jones index was first across the United States market, a subset of the index, July 31, 2002, and joined Canada, France, Italy, Germany, the Netherlands, Sweden and the UK. Style index includes two types of value index and growth index, they also can be divided into large-scale index, medium index and small index. Index constituent stocks selected mainly investigate whether for value or growth stocks. Value and Growth of no standard definition, generally considered price-earnings ratio (Price to earning ratio) is low, price - book value ratio (Price to book ratio) is low, a larger dividend stocks for value may stock; income, sales, profits and cash flow showed a higher growth, but also the profit is reinvested stock dividends may be higher than for growth stocks.
2, the Dow Jones Emerging Markets IndexEmerging Markets (Emerging Market) because large changes in market structure, market opening is not high, with well-developed market coverage is not realistic, and sometimes even impossible, so a combined market capitalization of emerging markets 95% of the total market value of the method. Emerging market countries and regions including Brazil, Malaysia, the Philippines, Chile, Mexico, South Africa, Thailand, Indonesia, New Zealand, South Korea, Venezuela. Emerging market index can be divided into regional index and the index scale.
