What is Dow Jones Industrial Average ?

5042 reads · Last updated: December 5, 2024

The Dow Jones Industrial Average (DJIA) is one of the most famous and widely cited stock market indices in the United States. Created by Charles Dow in 1896, the index is used to measure the performance of the major industrial sectors of the American economy. The DJIA consists of 30 large publicly traded companies considered to be leaders in their respective industries, covering various sectors such as technology, finance, consumer goods, healthcare, and more. The index is calculated using a price-weighted method, meaning that stocks with higher prices have a greater influence on the index's value. The Dow Jones Industrial Average is widely used to assess market trends, portfolio performance, and the overall economic health.

Suggested for You

Refresh