The Dow Jones Industrial Average (DJIA), or the Dow, is a stock market index that tracks the performance of 30 large, publicly-owned U.S. companies across various industries, excluding transportation and utilities.
As a price-weighted index, stocks with higher prices have a greater influence on the index’s value.
Created by Charles Dow and Edward Jones in 1896, it is one of the oldest and most well-known indexes.
The DJIA serves as a key indicator of the U.S. economy’s health and is closely monitored by investors and analysts.
Major companies in the DJIA include Apple, Boeing, Coca-Cola, and Goldman Sachs.
While influential, the DJIA’s price-weighted nature means it may not accurately reflect market capitalization or economic impact compared to indexes like the S&P 500.
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