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Unformatted text preview: to try and make a quick fortune with money that you cannot afford to lose is a very dangerous financial proposition. On April 17 1991 the Dow Jones Industrial Average (DJIA) was at 3000 On On April 17, 1991 the Dow Jones Industrial Average (DJIA) was at 3000. On January 14, 2000, the DJIA hit a record 11,723. That is a 290.77% gain over this time period. That is an average gain of 33.23% per year over 8.75 years. So, what does all this mean. It means that if you had purchased $10,000 worth of stock in the 30 companies that comprise the DJIA on April 17, 1991, on January 14, 2000 your initial $10,000 investment would have been worth $39,077. Returns like the ones illustrated here lures a lot of money out of bank accounts and into the stock 38 market. For more information on the DJIA, go to: http://www.dowjones.com/corp/index_average.html...
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This note was uploaded on 12/29/2011 for the course ECO 210 taught by Professor Malls during the Fall '10 term at SUNY Stony Brook.
- Fall '10