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<ul><li><strong>The 30-share BSE <keyword id="1231603" type="PERSON" weightage="20" keywordseo="barometer">barometer</keyword> was trading 925.67 points or 3.10% higher at 30,819.63<br /></strong></li><li><strong>The NSE <keyword id="6354813" type="UNKNOWN" weightage="20" keywordseo="Nifty">Nifty</keyword> was quoting 270.05 points, or 3.09%, up at 9,018.80. <br /></strong></li><li><strong>According to analysts, the slowing pace of fresh COVID-19 cases has also lent some momentum to global markets.</strong></li></ul>Equity <keyword id="6355376" type="DEFINITION" weightage="20" keywordseo="Benchmark">benchmark</keyword> <keyword id="6484188" type="DEFINITION" weightage="20" keywordseo="sensex">Sensex</keyword> soared over 900 points in opening trade on Thursday led by gains in financial, IT and FMCG stocks following rise global equities on hopes of the COVID-19 pandemic approaching its peak. After hitting a high of 30,847.10 at 9:55 am, the 30-share BSE barometer was trading 925.67 points or 3.10% higher at 30,819.63. <br /><br /> Similarly, the NSE Nifty was quoting 270.05 points, or 3.09%, up at 9,018.80. <br /><br /> HDFC was the top gainer in the Sensex pack, surging up to 5%, followed by Maruti, Bharti Airtel, Bajaj Finance, Tata Steel, Hero MotoCorp and ICICI Bank. <br /><br /> On the other hand, HUL was the sole laggard. <br /><br /> In the previous session, the BSE barometer closed 173.25 points or 0.58% lower at 29,893.96, and the Nifty settled 43.45 points, or 0.49%, down at 8,748.75. <br /><br /> Foreign institutional investors (FIIs) were net buyers in the capital market, as they bought equity shares worth Rs 1,943.41 crore on Wednesday, according to provisional exchange data. <br /><br /> According to experts, hopes of another financial stimulus hope before the end of the lockdown period buoyed investor sentiment in early session. <br /><br /><strong>Global Cues</strong><br /><br />Further, slowing pace of fresh COVID-19 cases has also lent some momentum to global markets, the analyst said.<br /><br />On Wednesday (April 9), the Dow Jones Industrial Average jumped 779.71 points, or 3.44%, to 23,433.57. The S&amp;P 500 rose 90.57 points, or 3.41%, to 2,749.98. The Nasdaq Composite Index increased 203.64 points, or 2.58%, to 8,090.90.<br /><br />All the 11 primary S&amp;P 500 sectors ended higher, with real estate and energy up 7.41% and 6.74%, respectively, outperforming the rest.<br /><br />The market also found some support after US Democratic presidential candidate Bernie Sanders dropped out of the race Wednesday, paving the way for the party's only remaining candidate Joe Biden to become the Democratic nominee.<br /><br />The news boosted the market mood as Biden is viewed by Wall Street as a more market-friendly candidate than Sanders, according to analysts.<br /><br /> Bourses in Shanghai, Hong Kong, and Seoul were trading on a positive note, while those in Tokyo were in the red. <br /><br /> Benchmark exchanges on Wall Street ended significantly higher in overnight trade. <br /><br /> Brent crude futures, the global oil benchmark, rose 1.55% to USD 33.34 per barrel. <br /><br /> The death toll due to the novel <keyword id="1754604" type="PERSON" weightage="20" keywordseo="coronavirus">coronavirus</keyword> in India rose to 166 and the number of cases to 5,734, according to the Union Health Ministry. <br /><br /> Global tally of the infections has crossed 14.8 lakh, with over 88,000 deaths.<br /><br />SEE ALSO:<a href="https://www.businessinsider.in/topic/coronavirus">Coronavirus News and Updates</a> <br /><br /><a href="https://www.businessinsider.in/india/news/how-to-check-coronavirus-symptoms-at-home/articleshow/74960334.cms">What are the Coronavirus symptoms and how to check for them at home</a>

Indian stock market indices rally over 3% amidst positive cues from global markets

<ul class="summary-list"><li>The <keyword id="70622" type="ORGANIZATION" weightage="60" keywordseo="Dow-Jones-Industrial-Average">Dow Jones Industrial Average</keyword> (DJIA) is one of the world's oldest stock market indexes, consisting of 30 US corporate giants.</li><li>Despite some criticism, the Dow remains highly respected, a reliable gauge of the overall stock market and the US economy.</li><li>While you can't invest in the DJIA itself, you can buy an index fund that tracks it, or the individual stocks.</li></ul><p>When people talk about "the Dow," "the <keyword id="55718" type="CITY" weightage="60" keywordseo="Dow-Jones">Dow Jones</keyword>," or "the Dow 30," they're referring to the <a href="https://markets.businessinsider.com/index/dow_jones" target="_blank" rel="noopener">Dow Jones Industrial Average (DJIA)</a>. And to understand the Dow, you must understand it's actually two things: a <keyword id="1761852" type="PERSON" weightage="60" keywordseo="stock-market-index">stock market index</keyword> of 30 chosen companies and a benchmark number.</p><p>As an index, the DJIA one of the oldest and most widely recognized among the <a href="http://www.indexindustry.org/2020/10/28/fourth-annual-iia-benchmark-survey-reveals-significant-growth-in-esg-amid-continued-multi-asset-innovation-heightened-competition/" target="_blank" rel="noopener">3 million</a> stock market indices in the world. As a constantly changing benchmark number, it's endlessly watched, analyzed, and bet upon. And in both capacities, the Dow acts as a stand-in for the US stock market itself - and a bellwether of the state of the US economy. </p><h2><strong>Understanding the Dow Jones </strong></h2><p>As the "Dow 30" moniker implies, the DJIA index consists of a select group of 30 <a href="https://www.businessinsider.com/what-are-blue-chip-stocks" target="_blank" rel="noopener">blue-chip US companies</a> publicly traded on the New York Stock Exchange (NYSE) and NASDAQ stock <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword>. </p><p>The collective prices of these 30 stocks make up the Dow average which is calculated every day by adding up the individual close of day prices of all Dow stocks, and dividing that sum by the Dow Divisor, a factor designed to compensate for stock splits and other variations in share prices. </p><p>The Dow Divisor is manually adjusted by The Wall Street Journal (owned by Dow Jones) to account for share buybacks, splits, payment of dividends, and other changes to Dow index companies' stocks. </p><p>The average and its movements are annotated in points, with each point representing a dollar. </p><p>The result of the calculation is the Dow Jones Industrial Average (DJIA) "close" for that day. For example, on Dec. 11, 2020, the Dow closed at 30,046.37, up 47.11 ($47.11) from the previous day, or +0.16%. </p><p>Like the shares within it, the Dow's constantly moving. As stock prices fluctuate, the DJIA goes higher or lower. This movement gives investors and traders a way to track the market based on the changing prices of those 30 stocks. The DJIA appears widely on financial and other news websites every day.</p><h3><strong>History of the Dow Jones</strong></h3><p>The DJIA was launched in May 1896 by Charles Dow and his business associate Edward Jones. Both were American journalists, co-founders of Dow-Jones and Company, then a financial news bureau. They thought it would help explain stock-market movements to readers.</p><p>It was the second stock market index ever created. The first was from the same team: the Dow Jones Transportation Average, born in 1884.</p><p>Originally, the Dow consisted of just a dozen companies in the gas, sugar, tobacco, railroad, and oil industries. </p><p>Over the years <a href="https://www.wsj.com/articles/why-does-the-dow-jones-industrial-average-matter-everything-you-need-to-know-11606252962" target="_blank" rel="noopener">the index </a>evolved, expanding to 30 companies and including every major industrial sector except transportation, utilities, and real estate.</p><p>The make-up of the DJIA has changed over the years too, with stocks being added or taken off. S&amp;P Dow Jones Indices (a division of Dow Jones) and selected editors of The Wall Street Journal change the DJIA roster when they feel an update is warranted. </p><h2>What stocks are in the Dow Jones? </h2><p>As of 2020, these are the 30 companies whose stocks are currently represented in the Dow Jones Industrial Average index.</p><p>On average, a company is dropped and replaced by another only about <a href="https://eu.spindices.com/indexology/djia-and-sp-500/the-changing-djia" target="_blank" rel="noopener">once every two years</a>. When they do it's because a company's importance or influence in its industry has fallen.</p><p>Most recently in August 2020, Exxon Mobil, the longest-tenured member of the Dow, was dropped and replaced by Salesforce, a cloud-based software company. Exxon joined the Dow in 1928 as Standard Oil of New Jersey and remained there, albeit with a couple of name changes, for 92 years. </p><p>The recent change, which resulted in a rare replacement of three DJIA companies, Raytheon, Pfizer, and Exxon with Amgen, Honeywell, and Salesforce, was precipitated by a 4-for-1 <a href="https://www.businessinsider.com/what-is-a-stock-split" target="_blank" rel="noopener">stock split</a> by Apple. <a href="https://markets.businessinsider.com/news/stocks/dow-jones-industrial-average-shakeup-exxon-pfizer-raytheon-removed-2020-8-1029531716">Apple's move shook up</a> the DJIA's price-weighted index, causing the addition of two additional tech stocks.</p><h2><strong>Why the Dow Jones is important</strong></h2><p>Some of the Dow's power and influence is due to its sheer venerability as the second oldest stock market index. The fact it represents and reflects the market movements of such giants as Microsoft, Boeing, IBM, and Coca Cola is another reason for its significance. </p><p>It may not have as many stocks as some other indexes, but what it has is choice - a representative cross-section of corporate America's major players. And, as noted above, the roster does periodically change, representing the rise or fall of different sectors. </p><p>As a result, many investors see the Dow 30 as a gauge of the US economy, and the key industries influencing and driving it. </p><p>When a company is added to or dropped from the DJIA, the replacements often have repercussions in the market. </p><h2><strong>Criticisms of the Dow Jones</strong></h2><p>The DJIA is not without critics. Some economists point to the relatively small number of companies in the index versus those in other widely watched indexes, such as:</p><ul><li>Standard &amp; Poor 500 (500 <a href="https://www.businessinsider.com/what-is-a-large-cap-stock" target="_blank" rel="noopener">large-cap</a> stocks on several exchanges)</li><li>NASDAQ 100 (100 large-cap stocks on the NASDAQ)</li><li>the Russell 1000 (1000 large- and <a href="https://www.businessinsider.com/what-is-a-mid-cap-stock" target="_blank" rel="noopener">mid-cap</a> stocks on the NYSE and NASDAQ)</li></ul><p>For this reason, they argue the Dow can't be an accurate benchmark of US businesses overall. Given the small number of companies, each one can easily tend to overrepresent its sector. </p><p>Recall, for example, <a href="https://markets.businessinsider.com/news/stocks/apple-stock-split-shares-performed-year-after-previous-historical-returns-2020-8-1029548855" target="_blank" rel="noopener">Apple's 4-for-1 stock split</a> that upset the Dow applecart and forced the index to replace three companies at once to reset the balance. </p><p>Another major criticism involves the fact the DJIA is a price-weighted index, meaning the average is based just on the price of component company stocks. Other major indices, such as the S&amp;P 500, are <a href="https://www.businessinsider.com/what-is-market-cap" target="_blank" rel="noopener">market-capitalization</a>-weighted, a system that values a company by taking the current stock price and multiplying it by the number of outstanding shares. </p><p>The main advantage, at least in theory, to market-cap-weighting over price-weighting is that by calculating the overall market value of a company (total shares times price) versus single share price, the system should tend to behave more like the market itself.</p><h2><strong>How to invest in the Dow Jones</strong></h2><p>The Dow Jones Industrial Average, as an index, does not sell shares in itself.</p><p>Of course, you can always buy all 30 of its stocks individually, turning your portfolio into a mini-Dow. </p><p>But a more cost-effective way to invest in the DJIA is through an index fund that holds all 30 Dow stocks, mirroring the actual index.</p><p>One exchange-traded fund that does that: the <a href="https://markets.businessinsider.com/etfs/spdr-dow-jones-industrial-average-etf-trust-us78467x1090" target="_blank" rel="noopener">SPDR Dow Jones Industrial Average ETF Trust (DIA)</a>. </p><p>This ETF puts 99.8% of its assets in all 30 Dow stocks, with the same weighting. It has no required minimum investment and has an expense ratio of 0.16%.</p><p>On the mutual fund side, Rydex Dow Jones Industrial Average Funds (<a href="https://markets.businessinsider.com/funds/rydex-dow-jones-industrial-average-fund-class-a-us78356c5397" target="_blank" rel="noopener">RYDAX</a>, <a href="https://markets.businessinsider.com/funds/rydex-dow-jones-industrial-average-fund-class-a-us78356c5397" target="_blank" rel="noopener">RYDKX</a>, <a href="https://markets.businessinsider.com/funds/rydex-dow-jones-industrial-average-fund-class-h-us78356c5132" target="_blank" rel="noopener">RYDHX</a>), invest more than 80% of assets in the Dow 30 with the rest split between derivatives and cash. All three funds require a minimum initial investment of $2,500, with sales fees starting at 1.70%.</p><p>Another quirky, but long-standing Dow value investing strategy is called Dogs of the Dow. The system is simple - buy the highest dividend-paying stocks in the Dow based on the idea that those stocks are undervalued. Since 2010 the Dogs of the Dow <a href="https://www.dogsofthedow.com/dogyrs.htm#:~:text=Since%20the%20turn%20of%20the%20century%2C%20Dogs%20of%20the%20Dow,the%20S%26P%20500%20at%207.7%25." target="_blank" rel="noopener">have posted an average annual return</a> of 15.9%.</p><h2><strong>The financial takeaway</strong></h2><p>The Dow's unusual price-weighting (versus market-cap-weighting) system has weathered criticism almost from the index's inception in 1896. Still, despite this and its relatively small number of component stocks, the Dow Jones Industrial Average is one of the most-respected bedrock market indexes in the world. </p><p>Historically, DJIA's performance has tracked very close to the overall stock market's. So in the eyes of analysts and investors alike, as the Dow goes, so goes the nation - even the world - of stocks.</p><h2>Related Coverage in <a href="https://www.businessinsider.com/investing-reference" target="_blank" rel="noopener">Investing</a>:</h2><h3><a href="https://www.businessinsider.com/what-is-common-stock" target="_blank" rel="noopener">What is common stock? The most typical way to invest in a company and profit from its growth</a></h3><h3><a href="https://www.businessinsider.com/how-to-diversify-portfolio" target="_blank" rel="noopener">How to diversify your portfolio to limit losses and guard against risk</a></h3><h3><a href="https://www.businessinsider.com/how-to-invest-in-dividend-stocks" target="_blank" rel="noopener">How to invest in dividend stocks, a low-risk source of investment income</a></h3><h3><a href="https://www.businessinsider.com/what-is-a-stock-split" target="_blank" rel="noopener">What is a stock split, and is it a good or bad sign when it happens?</a></h3><h3><a href="https://www.businessinsider.com/what-is-pe-ratio" target="_blank" rel="noopener">What is the P/E ratio? An analytical tool that helps you decide if a stock is a good buy at its current price</a></h3>

The Dow Jones Industrial Average is one of the most-watched stock index in the world - here's how it works and why it's so influential

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div><em>Bill Gates first got a copy of <a href="http://www.amazon.com/gp/product/1497644895/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=1497644895&amp;linkCode=as2&amp;tag=thebusiinsi-20&amp;linkId=4ESBT736B2HSAHPE">"Business Adventures" by John Brooks</a> after <a href="http://www.businessinsider.com/bill-gatess-favorite-business-book-2014-12">asking Warren Buffett</a> to recommend his favorite business book.</em></p><p><em>He had never heard of the book. But today it remains <a href="http://www.businessinsider.com/bill-gatess-favorite-business-book-2014-12">the best business book he's ever read</a>.</em></p><p><em>Gates says he likes the book for its deep insights into the fundamentals of business. Check it out for yourself - start reading chapter one, which covers the stock market crash of 1962, below.</em></p><p>The stock market - the daytime adventure serial of the well-to-do - would not be the stock market if it did not have its ups and downs.</p><p>Any board-room sitter with a taste for Wall Street lore has heard of the retort that J. P. Morgan the Elder is supposed to have made to a naïve acquaintance who had ventured to ask the great man what the market was going to do. "It will fluctuate," replied Morgan dryly.</p><p>And it has many other distinctive characteristics. Apart from the economic advantages and disadvantages of stock exchanges - the advantage that they provide a free flow of capital to finance industrial expansion, for instance, and the disadvantage that they provide an all too convenient way for the unlucky, the imprudent, and the gullible to lose their money - their development has created a whole pattern of social behavior, complete with customs, language, and predictable responses to given events.</p><p>What is truly extraordinary is the speed with which this pattern emerged full blown following the establishment, in 1611, of the world's first important stock exchange - a roofless courtyard in Amsterdam - and the degree to which it persists (with variations, it is true) on the New York Stock Exchange in the nineteen-sixties.</p><p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div></p><p>Present-day stock trading in the United States - a bewilderingly vast enterprise, involving millions of miles of private telegraph <span style="line-height: 1.5em;">wires, computers that can read and copy the Manhattan Telephone Directory in three minutes, and over twenty million stockholder participants - would seem to be a far cry from a handful of seventeenth-century Dutchmen haggling in the rain.</span></p><p>But the field marks are much the same.</p><p>The first stock exchange was, inadvertently, a laboratory in which new human reactions were revealed.</p><p>By the same token, the New York Stock Exchange is also a sociological test tube, forever contributing to the human species' self-understanding. The behavior of the pioneering Dutch stock traders is ably documented in a book entitled "Confusion of Confusions," written by a plunger on the Amsterdam market named Joseph de la Vega; originally published in 1688, it was reprinted in English translation a few years ago by the Harvard Business School.</p><p>As for the behavior of present-day American investors and brokers - whose traits, like those of all stock traders, are exaggerated in times of crisis - it may be clearly revealed through a consideration of their activities during the last week of May, 1962, a time when the stock market fluctuated in a startling way.</p><p>On Monday, May 28th, the Dow-Jones average of thirty leading industrial stocks, which has been computed every trading day since 1897, dropped 34.95 points, or more than it had dropped on any other day except October 28, 1929, when the loss was 38.33 points. The volume of trading on May 28th was 9,350,000 shares - the seventh-largest one-day turnover in Stock Exchange history.</p><p>On Tuesday, May 29th, after an alarming morning when most stocks sank far below their Monday-afternoon closing prices, the market suddenly changed direction, charged upward with astonishing vigor, and finished the day with a large, though not recordbreaking, Dow-Jones gain of 27.03 points.</p><p>Tuesday's record, or near record, was in trading volume; the 14,750,000 shares that changed hands added up to the greatest one-day total ever except for October 29, 1929, when trading ran just over sixteen million shares. (Later in the sixties, ten, twelve, and even fourteen-million share days became commonplace; the 1929 volume record was finally broken on April 1st, 1968, and fresh records were set again and again in the next few months.)</p><p><div class="KonaFilter image-container"><div class="image on-image"></div><p></p></div>Then, on Thursday, May 31st, after a Wednesday holiday in observance of Memorial Day, the cycle was completed; on a volume of 10,710,000 shares, the fifth-greatest in history, the Dow-Jones average gained 9.40 points, leaving it slightly above the level where it had been before all the excitement began.</p><p>The crisis ran its course in three days, but, needless to say, the post-mortems took longer.</p><p>One of de la Vega's observations about the Amsterdam traders was that they were "very clever in inventing reasons" for a sudden rise or fall in stock prices, and the Wall Street pundits certainly needed all the cleverness they could muster to explain why, in the middle of an excellent business year, the market had suddenly taken its second-worst nose dive ever up to that moment.</p><p>Beyond these explanations - among which President Kennedy's April crackdown on the steel industry's planned price increase ranked high - it was inevitable that the postmortems should often compare May, 1962, with October, 1929.</p><p><div class="KonaFilter image-container float_right"><div class="image on-image"></div><p></p></div>The figures for price movement and trading volume alone would have forced the parallel, even if the worst panic days of the two months - the twenty-eighth and the twenty-ninth - had not mysteriously and, to some people, ominously coincided.</p><p>But it was generally conceded that the contrasts were more persuasive than the similarities. Between 1929 and 1962, regulation of trading practices and limitations on the amount of credit extended to customers for the purchase of stock had made it difficult, if not actually impossible, for a man to lose all his money on the Exchange.</p><p>In short, de la Vega's epithet for the Amsterdam stock exchange in the sixteen-eighties - he called it "this gambling hell," although he obviously loved it - had become considerably less applicable to the New York exchange in the thirty-three years between the two crashes.</p><p>The 1962 crash did not come without warning, even though few observers read the warnings correctly. Shortly after the beginning of the year, stocks had begun falling at a pretty consistent rate, and the pace had accelerated to the point where the previous business week - that of May 21st through May 25th - had been the worst on the Stock Exchange since June, 1950.</p><p>On the morning of Monday, May 28th, then, brokers and dealers had reason to be in a thoughtful mood. Had the bottom been reached, or was it still ahead? Opinion appears, in retrospect, to have been divided.</p><p>The Dow-Jones news service, which sends its subscribers spot financial news by teleprinter, reflected a certain apprehensiveness between the time it started its transmissions, at nine o'clock, and the opening of the Stock Exchange, at ten.</p><p>During this hour, the broad tape (as the Dow-Jones service, which is printed on vertically running paper six and a quarter inches wide, is often called, to distinguish it from the Stock Exchange price tape, which is printed horizontally and is only three-quarters of an inch high) commented that many securities dealers had been busy over the weekend sending out demands for additional collateral to credit customers whose stock assets were shrinking in value; remarked that the type of precipitate liquidation seen during the previous week "has been a stranger to Wall Street for years;" and went on to give several items of encouraging business news, such as the fact that Westinghouse had just received a new Navy contract.</p><p>In the stock market, however, as de la Vega points out, "the news [as such] is often of little value;" in the short run, the mood of the investors is what counts. This mood became manifest within a matter of minutes after the Stock Exchange opened.</p><p>At 10:11, the broad tape reported that "stocks at the opening were mixed and only moderately active." This was reassuring information, because "mixed" meant that some were up and some were down, and also because a falling market is universally regarded as far less threatening when the amount of activity in it is moderate rather than great.</p><p>But the comfort was short-lived, for by 10:30 the Stock Exchange tape, which records the price and the share volume of every transaction made on the floor, not only was consistently recording lower prices but, running at its maximum speed of five hundred characters per minute, was six minutes late. The lateness of the tape meant that the machine was simply unable to keep abreast of what was going on, so fast were trades being made.</p><p>Normally, when a transaction is completed on the floor of the Exchange, at 11 Wall Street, an Exchange employee writes the details on a slip of paper and sends it by pneumatic tube to a room on the fifth floor of the building, where one of a staff of girls types it into the ticker machine for transmission.</p><p>A lapse of two or three minutes between a floor transaction and its appearance on the tape is normal, therefore, and is not considered by the Stock Exchange to be "lateness;" that word, in the language of the Exchange, is used only to describe any additional lapse between the time a sales slip arrives on the fifth floor and the time the hard-pressed ticker is able to accommodate it. ("The terms used on the Exchange are not carefully chosen," complained de la Vega.)</p><p>Tape delays of a few minutes occur fairly often on busy trading days, but since 1930, when the type of ticker in use in 1962 was installed, big delays had been extremely rare.</p><p>On October 24, 1929, when the tape fell two hundred and forty-six minutes behind, it was being printed at the rate of two hundred and eighty-five characters a minute; before May, 1962, the greatest delay that had ever occurred on the new machine was thirty-four minutes. Unmistakably, prices were going down and activity was going up, but the situation was still not desperate.</p><p><div class="KonaFilter image-container"><div class="image on-image"></div><p></p></div>All that had been established by eleven o'clock was that the previous week's decline was continuing at a moderately accelerated rate.</p><p>But as the pace of trading increased, so did the tape delay. At 10:55, it was thirteen minutes late; at 11:14, twenty minutes; at 11:35, twenty-eight minutes; at 11:58, thirty-eight minutes; and at 12:14, forty-three minutes. (To inject at least a seasoning of up-to-date information into the tape when it is five minutes or more in arrears, the Exchange periodically interrupted its normal progress to insert "flashes," or current prices of a few leading stocks. The time required to do this, of course, added to the lateness.)</p><p>The noon computation of the Dow-Jones industrial average showed a loss for the day so far of 9.86 points. Signs of public hysteria began to appear during the lunch hour.</p><p>One sign was the fact that between twelve and two, when the market is traditionally in the doldrums, not only did prices continue to decline but volume continued to rise, with a corresponding effect on the tape; just before two o'clock, the tape delay stood at fifty-two minutes.</p><p>Evidence that people are selling stocks at a time when they ought to be eating lunch is always regarded as a serious matter.</p><p>Perhaps just as convincing a portent of approaching agitation was to be found in the Times Square office (at 1451 Broadway) of Merrill Lynch, Pierce, Fenner &amp; Smith, the undisputed Gargantua of the brokerage trade.</p><p>This office was plagued by a peculiar problem: because of its excessively central location, it was visited every day at lunchtime by an unusual number of what are known in brokerage circles as "walk-ins" - people who are securities customers only in a minuscule way, if at all, but who find the atmosphere of a brokerage office and the changing prices on its quotation board entertaining, especially in times of stockmarket crisis. ("Those playing the game merely for the sake of entertainment and not because of greediness are easily to be distinguished." - de la Vega.)</p><p>From long experience, the office manager, a calm Georgian named Samuel Mothner, had learned to recognize a close correlation between the current degree of public concern about the market and the number of walk-ins in his office, and at midday on May 28th the mob of them was so dense as to have, for his trained sensibilities, positively albatross-like connotations of disaster ahead.</p><h3><a href="http://www.feedyourneedtoread.com/feature/inside-the-stock-market-crash-of-1962/">Click to keep reading  &gt;</a><br><br /></br></h3><p><em>This chapter of Business Adventures first appeared as "<a href="http://www.newyorker.com/magazine/1963/08/31/the-fluctuation">The Fluctuation</a>." From The New Yorker, August 31, 1963.</em></p>

Here's the first chapter of the business book Bill Gates says is the best he's ever read

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Indian stock market indices rally over 3% amidst positive cues from global markets

Navdeep Yadav

The Dow Jones Industrial Average is one of the most-watched stock index in the world - here's how it works and why it's so influential

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Here's the first chapter of the business book Bill Gates says is the best he's ever read

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