Transcript The Value of Outstanding Shares of Domestically Issued

CHAPTER
The Stock Market
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved.
17
The Value of Outstanding Shares of
Domestically Issued Stock since 1982 (End of
Year)
Year
Corporate Equities
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001*
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved.
$1,562.5
1,856.0
1,789.2
2,270.4
2,682.6
2,710.3
3,076.3
3,819.7
3,542.6
4,863.4
5,430.9
6,306.2
6,333.3
8,495.7
10,255.8
13,201.3
15,427.8
19,576.3
17,168.8
15,863.3*
*Through second quarter 2001.
SOURCE: Flow of Funds of the United States, Z1, Board of
Governors of the Federal Reserve System, various issues.
The Returns to Stocks and Bonds
over Time
Value of $100 invested
$5,000
in
stocks in 1969a
4,000
Value of $100 invested
in
bonds in 1969b
3,000
2,000
1,000
0
1970
1975
1980
1985
1990
1995
Year
ArETURN
TO STOCKS IS MEASURED BY THE Standard and Poor’s 500 Composite Index and includes reinvestment of dividends.
to bonds is measured by Moody’s AAA Rated Corporate Bond Index and includes reinvestment of interest.
cThrough September 28, 2001.
SOURCE: Global Financial Data, Los Angeles, California.
bReturn
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved.
2000 2001c
Net Non-U.S. Purchases of U.S.
Stocks
U.S. Dollars,
in Billions
200
193.8
151.0
150
120
112.3
100
80
67.8
60
42.0
40
20
0
11.2
11.1
'95
'96
'97
'98
'99
*Annualized through second quarter 2001.
SOURCE: Flow of Funds of the United States, Z1, Board of the Federal Reserve System, September 18, 2001, page 22.
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved.
'00
'01*
The Ten Largest Companies (Measure by
Market Value) Traded on the Big Board, July
2001
Ten Largest NYSE-Listed Companies
JULY 2001
Company Name
General Electric Co.
Exxon Mobil Corp.
Pfizer Inc
Citigroup Inc
Wal-Mart Stores
American International Group
AOL Time Warner Inc
Intl Business Machines Corp
Johnson & Johnson
Merck& Co
JULY 2001
JULY 2001
Symbol
Market Cap
($bil.)
NYSE Average
Daily Volume
Market Cap
($bil.)
Ge
XOM
PFE
C
WMT
AIG
AOL
IBM
JNJ
MRK
432.2
288.1
260.2
252.7
249.9
194.1
193.6
182.8
163.8
155.9
20,876540
10,958,637
13,242,718
11,257,568
7,428,327
4,849,423
13,078,036
7,748,647
8,183,296
6,710,387
506.9
278.2
165.9
237.6
244.9
203.8
117.4
202.9
129.3
167.0
SOURCE: http://www.NYSE.com.
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved.
The Companies that Make Up the
Dow as of August 31, 2001
Alcoa
American Express
AT&T
Boeing
Caterpillar
Citigroup Inc.
Coca-Cola
DuPont
Eastman Kodak
Exxon Mobil Corp.
General Electric Co.
General Motors Corp.
Hewlett-Packard Co.
Home Depot
Honeywell International Inc.
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved.
IBM
Intel Corp.
International Paper
J. P. Morgan Chase & Co.
Johnson & Johnson
McDonald’s Corp.
Merck & Co.
Microsoft Corp.
Minn. Mining & Manufacturing
Philip Morris Cos.
Procter & Gamble Co.
SBC Communications
United Technologies Corp.
Wal-Mart
Walt Disney
The Value of the DJIA, S&P 500, NYSE
Composite, and NASDAQ since 1985
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001*
Dow Jones
Industrial
Average
1,546.67
1,895.95
1,938.83
2,168.57
2,753.20
2,633.66
3,168.83
3,301.11
3,754.09
3,834.44
5,117.12
6,448.27
7,908.25
9,181.43
11,497.12
10,786.90
9,323.54
Stock Market Indices
(End of Period)
S&P 500
211.28
242.17
247.08
277.72
353.40
330.22
417.09
435.71
466.45
459.27
615.93
740.74
970.43
1,229.23
1,469.25
1,320.28
1,087.22
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved.
NYSE
Composite
121.58
138.58
138.23
156.26
195.04
180.49
229.44
240.21
259.08
250.94
329.51
392.30
511.19
595.81
650.30
656.87
557.60
NASDAQ
Composite
324.93
348.83
330.47
381.38
454.82
373.84
586.34
676.95
776.80
751.96
1,052.13
1,291.03
1,570.35
2,192.69
4,069.31
2,470.52
1,745.73
As of November 2, 2001.
SOURCE: Global Financial Data, Los
Angeles, California
Daily Average of Stock Market Volume
and Values Traded since 1985
Stock Market Volume
(Daily Avg., Mils. of Shs.)
NYSE
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000*
109.2
141.0
188.9
161.5
165.5
156.8
178.9
202.3
264.5
291.4
346.1
412.0
526.9
673.6
808.9
953.8
AMEX
8.3
11.8
13.9
9.9
12.4
13.2
133.3
14.2
181.1
17.9
20.1
22.1
24.4
28.9
32.7
37.1
As of July 2001.
SOURCE: Securities Industry Association
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved.
Value Traded
(Daily Avg., $ Bils.)
NASDAQ
NYSE
82.1
113.6
149.8
122.8
133.1
131.9
163.3
190.8
263.0
295.1
401.4
543.7
647.8
801.7
1,081.8
1,542.0
3.9
5.4
7.4
5.4
6.1
5.2
6.0
6.9
9.0
9.7
12.2
16.0
22.8
29.0
35.5
40.0
NASDAQ
0.9
1.5
2.0
1.4
1.7
1.8
2.7
3.5
5.3
5.8
9.5
13.0
17.7
22.9
43.7
79.7