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The Ask-A-Scholar Thread


SkinsKin26

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Okay, so I'm not a scholar, but in light of the past few days, it seems as though we could use a thread designated for questions. Basically, post your question in the thread, and the ES experts will gladly help. We can use this for homework, or if for some reason, you have a question as you teach yourself Organic Chemistry for fun.

I'm thinking people can even post what they're good at or do professionally, so people could even PM members. For example, Slacky, Mooka, and I cover math.

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I can help out with... well... hmmm

I can always be here to make smart ass jokes about you asking ES for homework help.:silly:

Seriously though, I'm a business management major. Most of that is common sense, so I don't think you'll really need the help I can offer.

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I might be able to help people with Statistics, Business Calc, Music theory, and a few other things....except for Accounting :shot:

That being said, does anybody have a strong accounting background? College student here struggling with an extra credit assignment in my Financial Accounting course.

If anybody is interested in trying to help me, I'd really appreciate it. I'm not looking for someone to do it for me but I truly need all the help I can get (already have a tutor "trying" to help me on campus...pretty sure I know more than she does haha)

I will scan the assignment & e-mail it to those who are interested at having a look.

Thanks~

P.S. This is a rigorous assignment....Peachtree/Quickbooks/Syspro computer accountants need not apply ;)

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I need an econ/business scholar to explain to me what the Dow Jones Industrial Average actually is... what does the number actually represent? Is it what it would cost to have one share of each of the 50 companies listed in it?

Same question for the Nasdaq composite and the S&P 500 (which i think is what 1 share of the fund would cost).

Thanks scholars.

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There are actually only 30 stocks listed in the Dow and the value of the Dow is actually higher than the value of all the stocks which make up the index. Think of it as a gauge of the market, we needed a way to see how the total market was faring at any given time. So, they took a bunch of stocks (the largest) from different sectors and took a weighted average with respect to price. Thus, the value of the dow is not the sum of the 30 stocks divided by 30, there is something which they call a dow jones divisor which takes care of stock splits (if a stock is trading at $10 and there was a split to send it to $5 this would drastically change the average if it was calculated in the normal way even though there was really no change in value).

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There are actually only 30 stocks listed in the Dow and the value of the Dow is actually higher than the value of all the stocks which make up the index. Think of it as a gauge of the market, we needed a way to see how the total market was faring at any given time. So, they took a bunch of stocks (the largest) from different sectors and took a weighted average with respect to price. Thus, the value of the dow is not the sum of the 30 stocks divided by 30, there is something which they call a dow jones divisor which takes care of stock splits (if a stock is trading at $10 and there was a split to send it to $5 this would drastically change the average if it was calculated in the normal way even though there was really no change in value).

So without this divisor number, I can't really calculate what it would be? Does the Nasdaq composite work the same way?

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So without this divisor number, I can't really calculate what it would be? Does the Nasdaq composite work the same way?

Correct, the divisor is updated frequently and you can find it on the CBOT's website. The Nasdaq & S&P are different in that they are calculated with respect to market cap so stock price x # of shares.

Check out this page to find more in depth about how the Nasdaq and S&P would be calculated :http://www.nasdaq.com/services/indexes/FAQs/default.aspx

I suppose the difference is that stocks with more market cap have more of an effect on the index than smaller companies. The Dow is different in this sense.

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L'Hopital's rule was brought up in the .999 thread, and considering I haven't taken or had use for calculus since my freshman days in 2003, I have completely forgotten what this stupid rule is. What is the purpose of this rule?

It lets you find the real limit when traditional methods will tell you that the limit is equal to 0/0 or infiniti/infiniti. :geek:

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