Dow Jones Transportation Average

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Dow Jones Transportation Average

A stock market index founded in 1884 by Charles Dow tracking (usually) 20 companies in the transportation industry. It is a price-weighted index, meaning that stocks with higher prices per share affect the average more. It also scales its averages to account for stock splits and other changes in the companies tracked. It includes stocks in shipping, airlines, trucking, railroads, and similar industries. It is the oldest actively used stock index in the world.
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Dow Jones Transportation Average.

The Dow Jones Transportation Average tracks the performance of the stocks of 20 airlines, railroads, and trucking companies. It is one of the components of the Dow Jones 65 Composite Average.

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References in periodicals archive ?
Firms added to the DJTA experienced a negative two day, (-1,0), return of .26%, which is not statistically significant.
These results for firms added to the DJIA and DJTA are consistent with Merton's attention hypothesis.
Firms added to the roster of the DJTA experienced neither abnormal returns nor greater trading volume on the event date.
Dow Jones & Company has not authorized any index trading based on either the DJIA or DJTA. Still the systematic price and volume responses documented for firms added to the DJIA roster may be due to the portfolio rebalancing of unauthorized index traders.
However, given that both the DJIA and DJTA are maintained by Dow Jones & Company, and no price or volume effects were found for changes in the DJTA, market participant's reaction to perceived superior information on the part of the Dow Jones & Company is an unlikely source of the event day price and volume responses for firms added to the DJIA.
Firms in the DJTA have smaller market values and account for a smaller proportion of daily trading volume on the NYSE.
Conversations with Dow Jones personnel support the non-information (future cash flows) content of the changes in the roster of the DJIA and DJTA. Objective criteria, such as the number of shares outstanding, the proportion of shares held by insiders, earnings growth, and industry ranking are used to screen the list of potential candidates.