The Dow Jones Industrial Average is a stock market index representing the performance of the largest publicly traded companies in the United States.
What is the Dow Jones Industrial Average?
The Dow Jones Industrial Average (DJIA) is a collection of 30 large, publicly-owned blue-chip companies. It is one of the most commonly used benchmarks for measuring the performance of the stock market.
How is the Dow calculated?
The Dow is calculated using a weighted average. This means that the price of each stock is multiplied by a certain weighting factor before being added together to create the final index value.
Which companies are included in the Dow?
The 30 companies included in the Dow are well-known companies such as Apple, Microsoft, Walmart, and ExxonMobil.
Key Points
Tracks 30 Large, Publicly-Owned Blue Chip Companies
The Dow Jones Industrial Average (DJIA) is a collection of 30 large, publicly-owned blue-chip companies. Blue-chip companies are often well-known, publicly traded companies with a strong track record of success and profitability. These companies are typically considered to be the most sound investments.
Collection of Stocks
The Dow Jones Industrial Average is a collection of stocks that represent the overall performance of the stock market. The stocks included in the DJIA come from different sectors of the economy, such as technology, finance, and manufacturing. This collection serves as a barometer of how the economy is performing.
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