Dow Jones Industrial Average (DJIA) Overview

Summary

The Dow Jones Industrial Average (DJIA) is a widely recognized stock market index consisting of 30 prominent companies listed on the New York Stock Exchange (NYSE) and the Nasdaq Stock Market.

Key Points

• The DJIA was created in 1896 by Charles Dow and Edward Jones.
• It is one of the oldest and most influential stock market indices, providing insights into the performance of the U.S. economy.
• The index is calculated using the sum of the stock prices of its 30 constituent companies, divided by a divisor that adjusts for stock splits and other corporate actions.
• The DJIA is often seen as a barometer of the overall health of the U.S. stock market and is closely followed by investors and analysts.
• It is important to note that the DJIA is a price-weighted index, meaning that companies with higher stock prices have a greater influence on the index's value.

The DJIA is a valuable tool for investors seeking to track the performance of the U.S. stock market. It provides a broad overview of the market's direction and is widely used as a benchmark for comparison.