Who or what is Dow Jones?

By Investopedia Staff AAA
A:

Dow Jones, or more precisely "Dow Jones & Company", is one of the largest business and financial news companies in the world. The firm was founded in 1896 by Charles Dow, Edward T. Jones and Charles Bergstresser. In 1889 they founded The Wall Street Journal, which remains one of the most influential financial publications.

It is easy to confuse Dow Jones with the Dow Jones Industrial Average (DJIA). Often referred to as "the Dow", the DJIA is one of the most watched stock indexes in the world, containing companies like General Electric, Microsoft, Coca-Cola and Exxon. Dow Jones (the company) owns the Dow Jones Industrial Average as well as many other indexes that represent different sectors of the economy.

In the world of finance, you'll often hear people ask, "How did New York do today?" or "How did the market perform today?" In both cases, these people are likely referring to the DJIA as it is the most widely used index, above both the S&P 500 Index and the Nasdaq Composite Index.

To find out how the Dow is calculated, see Calculating the Dow Jones Industrial Average. For more background on stock indexes in general, see our index investing tutorial.

RELATED FAQS

  1. What techniques can be used for hedging exposure to the electronics sector?

    Learn how allocating portfolio space to counter-cyclical and non-cyclical sectors allow investors to hedge exposure to the ...
  2. Who owns Dow Jones & Company?

    Learn how the purchase of Dow Jones & Company by News Corp. included the acquisition of The Wall Street Journal, Barron's ...
  3. What are the most effective ways to reduce moral hazard?

    Discover when moral hazard occurs, what it means in different arenas, and effective tools for lenders, insurers, and employers ...
  4. What are the Basel III rules, and how does it impact my bank investments?

    Learn about Basel III rules and how they impact investors in the banking sector. They have made banks less procyclical, forcing ...
RELATED TERMS
  1. Market Value

    The price an asset would fetch in the marketplace. Market value ...
  2. Bulldog Market

    A nickname for the foreign bond market of the United Kingdom. ...
  3. Float Shrink

    A reduction in the number of a publicly traded company’s shares ...
  4. Capital Strike

    A refusal of businesses to invest in a particular sector of the ...
  5. Gray Market

    An unofficial market where securities are traded. Gray (or “grey”) ...
  6. Floating Stock

    The number of shares available for trading of a particular stock.

You May Also Like

Related Articles
  1. Investing Basics

    What techniques can be used for hedging ...

  2. Investing

    Who owns Dow Jones & Company?

  3. Fundamental Analysis

    What are some examples of Cash Flow ...

  4. Mutual Funds & ETFs

    Which ETF is the Best Bet: VTI or IWV?

  5. Stock Analysis

    How You're Probably Using a 3M Product ...

Trading Center