| What would happen if DOW Industrial Average goes down to 0 |
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drg
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What would happen if DOW Industrial Average goes down to 0
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Star
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We rub sticks together to make fire, and kill each other for food.
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Clone
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from the way it looks, we are going to go into a recesssion, so people are praying that this somewhat likely thing will happen. But if it does, many people will be bankrupt, many people will be homeless, and everone around the world will be effected by it no matter what
help http://..com/81007134117AAEDrnF
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Doctor
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given that scenario l do not think you would want to be alive to see it that situation would result from nuclear armageddon the end of the world but they would close the stock exchange before the dow got to zero anyway so it could never happen
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Coach
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probably we will see 4th world war in which people fight with stones
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Kim
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This would mean that the net average value of the companies that comprise the dow have a market value of zero. In other words, they would be worthless:
3M Alcoa American Express AT&T Bank of America Boeing Caterpillar Chevron Corporation Citigroup Coca-Cola DuPont ExxonMobil General Electric General Motors Hewlett-Packard Home Depot Intel IBM Johnson & Johnson JPMorgan Chase Kraft Foods McDonald's Merck Microsoft Pfizer Procter & Gamble United Technologies Corporation Verizon Communications Walmart Walt Disney
If this happens, these corporations would become insolvent & seek bankruptcy protection. Before this would happen, however, they would likely be bought up. If it would happen, ur savings, retirement, etc.. would most likely be gone. Back to trading glass beads we go..
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Lostyo
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It is doubtful you'd ever see it go to 0, for a number of reasons.
First, the DOW is indexed to share prices. A share gives the owner both owner ship of the company plus any profits/dividends etc.
A share value of 0 says that the company is worthless, or in the negative. But most any company has SOME assets (building, equipment, etc.).
A share price of zero basically says the company is free.
Also, long before the DOW would get anywhere near 0 (Say, even 5-6000), would induce such panic that trading would probably be stopped, to give time to adjust.
Hope this helps.
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Bobyer
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say no try to take our home its not worth anything anymore so why would you want it empty. If l just burn it and put up a shack do you want that too
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Kickshaw
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we will find out in a week or two..annie get your gun..
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Lemon
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The stocks in the Dow amount to about 25 percent of the market cap in the stock market. Add another ten percent for the companies that depend on them. Things would be rough for a while, but eventually other businesses would take their place and things would move back to where they were.
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couzo
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umm, we learn the numbers for the S&P instead?
the only way the dow could possibly go to 0 is if they decided to disband it. l mean, they get to pick the companies that go into the dow, so as long as there are 30 public companies, the dow will be above 0.
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