An Overview Of The Dow Jones Industrial Average

What is Dow Jones Industrial Average

An overview of the Dow Jones Industrial Average

What is the Dow Jones Industrial Average?

The Dow Jones Industrial Average (DJIA) is a stock market index that measures the performance of 30 large publicly traded companies listed on stock exchanges in the United States. The index was created by Charles Dow and Edward Jones in 1896 and is one of the oldest and most widely followed stock market indices in the world.

How is the Dow Jones Industrial Average calculated?

The DJIA is calculated by taking the sum of the share prices of the 30 companies included in the index and dividing that number by the Dow Divisor. The Dow Divisor is a factor that is used to adjust the index for stock splits and other corporate actions that would otherwise affect its value.

What is the significance of the Dow Jones Industrial Average?

The Dow Jones Industrial Average is considered to be a bellwether of the U.S. stock market. It is often used by investors, analysts, and economists to gauge the overall health of the economy.

Conclusion

The Dow Jones Industrial Average is a valuable tool for investors who want to track the performance of the U.S. stock market. It is one of the oldest and most widely followed stock market indices in the world, and it is considered to be a bellwether of the overall health of the economy.

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