Where can I find all of the stocks in the Dow Jones Industrial Average?

By Ken Clark AAA
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 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 ...
  2. What advantages do corporations have over privately held companies?

    Learn about the chief advantages that publicly traded corporations have over other forms of business organizations, most ...
  3. How are S&P 500 index components weighted?

    Learn about how components of the S&P 500 are weighted, and how this calculation favors certain stocks in being more representative ...
  4. How are labor and capital affected by the balance of trade?

    Learn about the impact of international trade on labor, capital and the balance of trade, and see how the current account ...
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. Bid Wanted

    An announcement by an investor who holds a security that he or ...
  4. Float Shrink

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

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

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

You May Also Like

Related Articles
  1. Fundamental Analysis

    What are some examples of Cash Flow ...

  2. Mutual Funds & ETFs

    Which ETF is the Best Bet: VTI or IWV?

  3. Investing Basics

    Here's How To Tap International Markets

  4. Stock Analysis

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

  5. Investing News

    Looking To Invest In U.S Start-Ups? ...

Trading Center