Dow Jones Industrial Average (DJIA) Index 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 the New York Stock Exchange (NYSE) and the Nasdaq Stock Market.

Key Features of the DJIA

The key features of the DJIA include:

*

• Measures the performance of 30 large, blue-chip companies
• Listed on the NYSE and Nasdaq
• Weighted average of the share prices of the 30 companies
• Used as a barometer of the overall U.S. stock market

The DJIA is calculated by dividing the total market value of the 30 companies by the DJIA divisor. The divisor is adjusted whenever a company is added or removed from the index or when a stock split or dividend is issued.

History of the DJIA

The DJIA was created by Charles Dow and Edward Jones in 1896. It is the second oldest U.S. stock market index, after the Dow Jones Transportation Average. The DJIA has been used as a measure of the U.S. stock market for over 100 years and is one of the most widely followed indices in the world.

Conclusion

The Dow Jones Industrial Average is a widely followed stock market index that tracks the performance of 30 large, blue-chip companies. The DJIA is used as a barometer of the overall U.S. stock market and has been for over 100 years.