The Dow Jones Industrial Average®, (also called "Dow Jones", "Dow Jones Industrial", "Dow 30", or more commonly, "The Dow"), is a US stock market index that reflects a weighted average of the prices of 30 US stocks. It was created on May 26, 1896 by its founder, Charles Dow. The Dow is one of the most commonly quotes index averages in the USA - the others being the NASDAQ® and the S&P 500®. The DJIA is the second oldest US market index. The oldest indes is the Dow Jones Transportation Average, which was also created by Charles Dow.
The "Industrial" part of the name is largely historical. Most of the current-day components have little to do with traditional heavy industry. The DJIA weighted and all stock splits are taken into account. Its value is not a true average of the 30 components, but the sum of each individual stock, divided by a divisor. This divisor changes each time of the 30 component stocks undergoes a stock split or issues a dividend. This ensures a consistent value for the DJIA. Currently, the divisor is less than one. Therefore the DJIA is is larger than the sum of the component stock prices. The Dow is used to gague the health of the US economy, however, its performace is heavily influenced by corporate reports, economic reports, foreign events, and natural disasters.
As of September 1, 2014, the 30 stocks that make up the DJIA average are:
|Company||Ticker||Date Added||Last Price|
|Johnson & Johnson||JNJ||3/17/1997|
|JP Morgan Chase||JPM||5/6/1991|
|Proctor & Gamble||PG||5/26/1932|
|United Health Group||UNH||9/24/2012|
Other DJIA Links
Places to trade stocks and the DJIA Index:
TD Ameritrade: TDAmeritrade.com