The Dow Jones Industrial Average: A Measure of the US Stock Market
What is the Dow Jones Industrial Average?
The Dow Jones Industrial Average (DJIA), also known simply as the Dow, is a stock market index that tracks the stock performance of 30 large, publicly-owned blue-chip companies traded on the New York Stock Exchange (NYSE) and the Nasdaq Stock Market.
History of the Dow Jones Industrial Average
The Dow Jones Industrial Average was created in 1896 by Charles Dow, the editor of The Wall Street Journal, and statistician Edward Jones. The index was initially composed of 12 companies, but has since expanded to include 30 companies.
Importance of the Dow Jones Industrial Average
The Dow Jones Industrial Average is one of the most widely utilized indices of the US stock market. It is often used as a barometer of the overall health of the US economy.
The Dow Jones Industrial Average is also used by investors to make investment decisions. Many investors use the Dow as a benchmark to compare the performance of their own investments.
Components of the Dow Jones Industrial Average
The 30 companies that make up the Dow Jones Industrial Average are selected by the editors of The Wall Street Journal. The companies are chosen based on their size, industry, and financial performance.
The Dow Jones Industrial Average is reviewed annually by the editors of The Wall Street Journal. Companies may be added or removed from the index based on their performance and the overall composition of the index.
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