posted on Jul, 9 2008 @ 02:55 PM
The DJIA was first published in Customer's Afternoon Letter.It was published on May 26, 1896, and represented the average of twelve stocks from
various important American industries.
When it was first published, the index stood at 40.94
On July 30, 1914, when the New York Stock Exchange closed for the next four months, the index stood at 71.42.
Some historians believe the Exchange closed because of a concern that markets would plunge as a result of panic over the onset of World War I.
An alternative explanation is that Secretary of the Treasury, William Gibbs McAdoo closed the exchange because he wanted to conserve the US gold stock
in order to launch the Federal Reserve System later that year with enough gold to keep the US on the gold standard.
The crash of 1929 and the ensuing Great Depression returned the average to its starting point, almost 90% below its peak, by July 8, 1932, at its
intra-day low of 40.56; closing at 41.22.
I guess if it returns to its starting point thats the worst you can get.It cant go less than its starting point.And its already been there only 79
The first published rate of the DJIA was 40.94.
Lowest its been its just under that of 40.56.
I guess if it dropped to an actual rate of zero it would be worse.
However it would stop trading before that the figure of the starting point or a little less or more could be considered as its worst.It cant
theoretically go to 0 or below because at its starting rate it would just cease to trade.
[edit on 9-7-2008 by Being_From_Earth]