A:

The best place to find a list of all thirty stocks included in the Dow Jones Industrial Average (DJIA) is the "Historical Components List" published on the official DJIA website. This fascinating list, which shows every change in the index since its creation in 1884, is updated every time as stock is added or deleted.

The DJIA, considered by many to be the gold standard of market indicators, is comprised of some of the largest and most well-known companies in the United States. Due to the diversity of stocks in the index, many economists consider the DJIA to be a strong indicator of the overall strength of the U.S. economy, not just the investments market.

Unlike the market-weighted S&P 500 index, probably the second-most watched indicator, the Dow Jones Industrial Average is a price-weighted index. Thus, the DJIA is calculated theoretically by totaling the prices of one share of each component stock and dividing by thirty. However, the current divisor now equals a fraction of 1% due to years of adjustments for stock splits, mergers and the like. The price-weighted method arguably gives a more accurate representation of the movement of the overall market because it is not influenced by the number of shares each company has outstanding.

(For more on this topic, read Dow Jones Industrial Average History.)

This question was answered by Ken Clark.

RELATED FAQS
  1. What's the difference between the Dow Jones Industrial Average and the S&P 500?

    The major difference between these two indexes is that the Dow Jones Industrial Average (DJIA) includes a price-weighted ... Read Answer >>
  2. Is the Dow Jones a public company?

    Find out how the Dow Jones Industrial Average tracks the health of the U.S. economy. This fluctuating number indicates the ... Read Answer >>
  3. Why is the Dow Jones Industrial Average (DJIA) price weighted?

    Learn how the Dow Jones Industrial Average has told the story of the broad market through its simple, price-weighted calculation ... Read Answer >>
  4. What is the difference between the Dow and the Nasdaq?

    Because of the way people throw around the words "Dow" and "Nasdaq," both terms have become synonymous with "the market," ... Read Answer >>
  5. Is the Dow Jones a stock exchange?

    Learn about the Dow Jones Industrial Average and its impact. This historically significant index provides a daily snapshot ... Read Answer >>
  6. Who or what is Dow Jones?

    Dow Jones, or more precisely "Dow Jones & Company", is one of the largest business and financial news companies in the world. ... Read Answer >>
Related Articles
  1. Insights

    On This Day In Finance: May 26 - The Birth Of The Dow

    The birth of one of the oldest and most famous stock indexes in the world.
  2. Investing

    How Now, Dow? What Moves The DJIA?

    Find out how this index tracks market movements and where it falls short.
  3. Investing

    Strategies To Trade The Dow Jones Industrial Average

    Here are four strategies for trading the Dow Jones Industrial Average (DJIA), one of the oldest and most widely-followed equity indices in the world.
  4. Investing

    Understanding And Playing The Dow Jones Industrial Average

    Learn strategies for investing in this price-weighted index and how to interpret its movements.
  5. Insights

    A History Of Wall Street Profitability

    Learn about the performance of the Dow Jones Industrial Averages (DJIA) through the decades.
  6. Investing

    The Top Position Holders In The DJIA

    Find out who the major players are in the Dow Jones Industrial Average and who has been kicked out recently.
  7. Investing

    S&P 500 Vs. Dow Jones ETF: Which is a Safer Investment? (SPY,DIA)

    Learn about why the risks of investing in the ETFs that track the S&P 500 and the Dow Jones Industrial Average are very similar for investors.
  8. Investing

    Why The Dow Matters

    Although the DJIA only includes 30 stocks, it can tell you a lot about the market as a whole.
  9. Trading

    How to Trade Dow Jones Future Contracts

    Learn about the Dow Jones Index futures contracts available and obtain step-by-step instruction on how to trade the stock index futures.
  10. Insights

    An Introduction to Stock Market Indices

    Investopedia explains the five most talked about indices and what makes them all different.
RELATED TERMS
  1. Dow Jones Industrial Average (DJIA) Yield

    The aggregate dividend yield on the 30 stocks that make up the ...
  2. Dow Jones 65 Composite Average

    A composite index that measures changes within the 65 companies ...
  3. Theoretical Dow Jones Index

    A method of calculating a Dow Jones index (most often the DJIA) ...
  4. Dow Divisor

    A numerical value computed by Dow Jones Indexes that is used ...
  5. Dow Jones Transportation Average - DJTA

    A price-weighted average of 20 transportation stocks traded in ...
  6. Dow Jones U.S. Market Index

    A market-capitalization-weighted index maintained by Dow Jones ...
Hot Definitions
  1. Price Elasticity Of Demand

    A measure of the relationship between a change in the quantity demanded of a particular good and a change in its price. Price ...
  2. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying ...
  3. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Down Round

    A round of financing where investors purchase stock from a company at a lower valuation than the valuation placed upon the ...
  6. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
Trading Center