The Dow Theory States That as Long as the Dow

question 40

True/False

The Dow Theory states that as long as the Dow Jones Industrial Average and the Dow Jones Transportation Average move in the same direction,the market will continue its current trend.

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Definitions:

Stock Split

An action by a corporation to break up its present shares into more shares, aiming to improve the tradability of the shares.

Market Price

The price at present for the exchange of an asset or service on the open market.

Paid In Surplus

The amount of money paid by investors for shares above their nominal value during the issuance of shares, reflecting the additional equity capital that is not registered as share capital.

Stock Split

An action by a company to divide its existing shares into multiple shares to boost the liquidity of the shares.