Dow Jones Industrial Average (DJIA)
The Dow Jones Industrial Average (DJIA) is a stock market index that tracks the performance of 30 large, publicly traded companies listed on the New York Stock Exchange (NYSE) and the NASDAQ. It is one of the oldest and most widely followed stock market indices in the world. The DJIA is a price-weighted index, meaning that the stocks with the highest prices have the greatest impact on the index’s performance. The DJIA is often used as a barometer for the overall health of the U.S. stock market and economy.
History of the Dow Jones Industrial Average
The Dow Jones Industrial Average was created in 1896 by Charles Dow, editor of the Wall Street Journal, and statistician Edward Jones. The index was originally composed of 12 stocks, but it has since grown to include 30 stocks. The index was designed to track the performance of the industrial sector of the U.S. economy, but it has since become a barometer for the entire U.S. stock market. The DJIA is one of the oldest and most widely followed stock market indices in the world.
The DJIA has seen its share of ups and downs over the years. It reached its highest point in October 2007, when it closed at 14,164.53. The index then plummeted during the financial crisis of 2008, bottoming out at 6,547.05 in March 2009. Since then, the index has recovered and is currently hovering around the 30,000 mark.
Comparison Table
| Index | Number of Stocks | Weighting Method |
|---|---|---|
| Dow Jones Industrial Average | 30 | Price-Weighted |
| S&P 500 | 500 | Market-Weighted |
| NASDAQ Composite | Over 3,000 | Market-Weighted |
Summary
The Dow Jones Industrial Average (DJIA) is a stock market index that tracks the performance of 30 large, publicly traded companies listed on the NYSE and NASDAQ. It is one of the oldest and most widely followed stock market indices in the world. The DJIA is a price-weighted index, meaning that the stocks with the highest prices have the greatest impact on the index’s performance. The DJIA is often used as a barometer for the overall health of the U.S. stock market and economy.
For more information about the Dow Jones Industrial Average, visit the websites of the Wall Street Journal, the New York Stock Exchange, and the NASDAQ. Additionally, the websites of financial news outlets such as Bloomberg, CNBC, and MarketWatch provide up-to-date information about the DJIA.
See Also
- S&P 500
- NASDAQ Composite
- NYSE Composite
- Russell 2000
- Wilshire 5000
- Price-Weighted Index
- Market-Weighted Index
- Stock Market Index
- Stock Market
- Investing
