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 does the Dow Jones Industrial Average measure?

    The Dow Jones Industrial Average (DJIA) is a price-weighted index that measures the daily price movements of 30 large American ... Read Answer >>
  2. How many components are listed on the Dow Jones Industrial Average?

    Learn how many components comprise the Dow Jones Industrial Average and understand the stock index's origins and how it is ... Read Answer >>
  3. What's the difference between the Dow Jones Industrial Average and the S&P 500?

    The DJIA is a price-weighted average of 30 stocks whereas the S&P 500 is a market value-weighted index of 500 stocks. Read Answer >>
  4. What is the difference between the Dow Jones Industrial Average and the S&P 500

    Learn about the Dow Jones Industrial Average and the S&P 500, including interesting facts about these indexes, and discover ... Read Answer >>
  5. 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 >>
  6. What is the difference between the Dow and the Nasdaq?

    The Dow refers to the Dow Jones Industrial Average (DJIA), an important index that indicates how well the overall stock market ... Read Answer >>
Related Articles
  1. Investing

    How Now, Dow? What Moves The DJIA?

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

    Understanding And Playing The Dow Jones Industrial Average

    Learn strategies for investing in this price-weighted index and how to interpret its movements.
  3. 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.
  4. 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.
  5. Investing

    Why The Dow Matters

    Although the DJIA only includes 30 stocks, it can tell you a lot about the market as a whole.
  6. 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.
  7. Financial Advisor

    The 3 Most Shorted Dow Stocks (V, CAT)

    Read about three heavily shorted stocks that are components of the Dow Jones Industrial Average, including one company with recent success.
  8. Insights

    What Does The Dow Jones Industrial Average (DJIA) Quote Represent?

    “The Dow” is regarded as the “pulse of the stock market,” as it is one of the most quoted and followed stock market indices by investors, market professionals and media.
  9. Investing

    4 Famous Companies Dropped From the Dow Jones

    Learn about some of the largest and most famous companies that have been removed from the Dow Jones Industrial Average (DJIA) over its 119-year history.
RELATED TERMS
  1. Dow Jones Industrial Average (DJIA) Yield

    The aggregate dividend yield on the 30 stocks that make up the ...
  2. Dow Jones Industrial Average - DJIA

    The Dow Jones Industrial Average is a price-weighted average ...
  3. Dow Jones 65 Composite Average

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

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

    A numerical value computed by Dow Jones Indexes that is used ...
  6. Dogs Of The Dow

    An investing strategy that consists of buying the 10 DJIA stocks ...
Hot Definitions
  1. Free Cash Flow - FCF

    A measure of financial performance calculated as operating cash flow minus capital expenditures. Free cash flow (FCF) represents ...
  2. Leverage Ratio

    Any ratio used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to ...
  3. Two And Twenty

    A type of compensation structure that hedge fund managers typically employ in which part of compensation is performance based. ...
  4. Market Capitalization

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

    A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual ...
  6. Mezzanine Financing

    A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies. Mezzanine financing ...
Trading Center