On October 8, 1896, the world first heard the phrase, which today necessarily sounds in thousands of news releases around the world. An index created by renowned journalist Charles Henry Dow, which to this day is considered one of the main US stock indicators and is a guideline for the entire world economy, was presented on this day.
It is believed that the world’s first stock index was created by Charles Henry Dow, a well-known American journalist, the founder of The Wall Street Journal. A prerequisite for this was the distrust of the majority of exchange players in stocks, which at that time were a relatively new instrument.
Investors invested in bonds, the income from which could be calculated, and interest was guaranteed by the property of the companies issuing these securities. That is, behind them were real physical assets. But the shares were considered an unreliable tool, although much more dynamic and promising huge profits, not limited to fixed interest. The stocks were mainly traded by speculators; it was not possible to pull really big money into this sphere. In order to trade stocks profitably and understand where the market is going, it was necessary to monitor the price dynamics of a whole line of such securities, which was very difficult. Continue reading