Dow Jones: An Overview

What is the Dow Jones Industrial Average?

The Dow Jones Industrial Average (DJIA) is a stock market index that tracks the performance of 30 large publicly traded companies listed on stock exchanges in the United States.

History and Significance

Created in 1884 by Charles Dow and Edward Jones, the DJIA is one of the oldest and most widely followed stock market indices globally. It measures the stock performance of iconic American companies and is considered a barometer of the overall health of the US economy.

Composition

The 30 companies included in the DJIA are selected based on factors such as industry representation, market capitalization, and financial strength. The index is periodically reviewed and adjusted to ensure it reflects the changing economic landscape.

Economic Indicator

The DJIA is closely watched by investors, analysts, and policymakers as an indicator of the broader stock market's direction. Its movements often influence investment decisions and serve as a gauge of economic sentiment.

Other Dow Jones Indices

In addition to the DJIA, Dow Jones publishes various other stock market indices, such as the Dow Jones Transportation Average, the Dow Jones Utility Average, and the Dow Jones Global Titans 50 Index.