DOW JONES
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426.15 (0.97%)
DOW JONES Chart
DOW JONES Performance
DOW JONES Resistance and Support
About DOW JONES
Dow Jones Index
The Dow Jones Industrial Average (DJIA) is a well-recognised stock market index which is meant to measure the daily stock market movements of 30 publicly traded US companies listed on the NASDAQ or NYSE. This was created by Charles Dow, the index began with 12 industrial-focused companies in 1896. Stay updated on economic trends and investment prospects by monitoring the Dow Jones Industrial stock market's fluctuations. Over time, it has expanded to include companies in technology, health, and retail sectors. The index changes when one or more components experience financial distress, reflecting a significant economic shift.
History of the Dow Jones
The Dow Jones industrial average stock market index was established in 1896 by Charles Dow and Edward Jones, following the creation of the Dow Jones Transportation Average (DJTA). The index, consisting of 30 stocks, initially focused on prominent U.S. blue-chip companies in industries like gas, sugar, tobacco, railroads, and oil. Since its inception, the DJIA has undergone various transformations, including expanding the number of components from 12 to 20 in 1916 and further increasing to 30 in 1928. During economic turbulence, such as the Great Depression and Great Recession, the DJIA replaced eight stocks with new ones in 1932, maintaining its relevance as a leading indicator of the U.S. stock market's performance. The individuals need to stay informed about market trends by staying updated on the real-time movements of the Dow Jones index live.
The DJIA, a leading indicator of the U.S. stock market, has undergone significant changes since its inception. It expanded its components from 12 to 20 in 1916 and 30 in 1928, and underwent revisions during economic turbulence like the Great Depression and Great Recession. These adjustments have ensured the DJIA's relevance and accuracy as a leading indicator of the market's performance.
How does Dow Jones work?
The DJIA was made to see how the big companies in the US doing industrial work were doing. It's a bit different from other indexes because it looks at how much a company's shares cost. If a company's shares cost a lot, it has more say in the index compared to those with cheaper shares. At first, they just added up the prices of shares for 12 companies and divided it by 12. Later, they changed it to show how much each company matters in the index based on its value. The Dow Jones Index stocks consist of various components that provide an overview of the top-performing stocks in the market.
Nowadays, the DJIA still works the same way. They add up the Dow Jones share price for 30 companies and then divide it by something called the Dow index stocks Divisor. This number helps keep things fair when companies do stuff like splitting their shares. As of August 2018, the Dow Divisor is 0.14748071991788. The Dow Jones live chart offers real-time updates on the index's movements, enabling investors to make informed decisions.
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