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Dear J.P.

Thanks again for your wonderful advice.

I think I have it now. Falling below 10,000 means the average price of all 30 ocmpanies. I would imagine that it might be difficult to "split" your stock if you're on one of the 30 DJIA companies; it would erroneously skew the average downward when in fact the stock were increasing in price. It is a guage to be used as a point of reference only and the "point of reference" shouldn't move but rather the rest of us pivot around it.

I wondered why they removed General Mills and inserted another large company...not even in the same sector (I think it was an energy company) when the perverbial "s___ hit the fan" around Septermber 29th. It seems like that was simply ofered a very thick coat of cover-up make-up to a very big pimple on the nose of the DJIA. I was not too happy to see them "making substitutions" as a way to shore-up confidence. Did you catch when they did that? Okay, so 10K just means $10K in dollars.

Thanks for all of the explanations and references. You have been very helpful. No, I have not been getting any negative responses at all and in fact, the post you answered was my very first post on a chat board ANYWHERE. I just didn't know what to expect from my VERY elementary and seemingly "foolish" question.

I guess everyone assumes that everybody knows this stuff and it should be common knowledge but when I googled and yahooed the question, I didn't get anywhere.....TOO SIMPLE AND TOO STUPID to be answered anywhere on the net. I got so frustrated after a couple of days of searching that I decided to sign up on this chat board.

Thasnks again for your very helpful and supportive replies.


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