Dow Jones Industrial Average - DJIA

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DEFINITION of 'Dow Jones Industrial Average - DJIA'

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.

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BREAKING DOWN 'Dow Jones Industrial Average - DJIA'

Often referred to as "the Dow," the DJIA is one of the oldest and single most watched index in the world. The DJIA includes companies like General Electric, Disney, Exxon and Microsoft.

When the TV networks say "the market is up today," they are generally referring to the Dow.

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RELATED FAQS
  1. Can I buy index options on the Dow Jones Industrial Average?

    The Chicago Board Options Exchange, or CBOE, offers index options on the Dow Jones Industrial Average that are European-style ... Read Full Answer >>
  2. What are most popular benchmarks that track the chemicals sector?

    The most popular benchmarks that track the chemicals sector are the Dow Jones U.S. Chemicals Index, the Dow Jones Industrial ... Read Full Answer >>
  3. How is the Dow Jones Industrial Average used in the Dow theory?

    The Dow Jones Industrial Average (DJIA) is used in the Dow theory as a confirmation of strength or weakness in the Dow Jones ... Read Full Answer >>
  4. What does the Dow Jones Industrial Average measure?

    The Dow Jones Industrial Average (DJIA) is the oldest and best-known stock market index. It measures the daily price movements ... Read Full Answer >>
  5. What is the difference between the Dow Jones Industrial Average and the S&P 500

    The Dow Jones Industrial Average (DJIA) and the S&P 500 are both widely followed American stock market indexes. The major ... Read Full Answer >>
  6. How many components are listed on the Dow Jones Industrial Average?

    The Dow Jones Industrial Average, or DJIA, is a stock index comprised of 30 different companies traded on the Nasdaq and ... Read Full Answer >>
  7. What is the average annual return for the S&P 500?

    According to historical records, the average annual return for the S&P 500 since its inception in 1928 through 2014 is ... Read Full Answer >>
  8. What does the S&P 500 index measure and how is it calculated?

    The S&P 500 measures the value of stocks of the 500 largest corporations by market capitalization listed on the New York ... Read Full Answer >>
  9. Are there ETFs that track the drugs sector?

    There are several exchange traded funds (ETFs) that track the pharmaceutical sector. These are specialized funds that are ... Read Full Answer >>
  10. Are put options more difficult to trade than call options?

    Both put and call options trading are about the same level of difficulty. Put options, however, may be slightly more difficult ... Read Full Answer >>
  11. What are the most common ETFs that track the forest products sector?

    There are two common exchange traded funds (ETFs) that track the forest products sector: the Guggenheim Timber ETF (CUT) ... Read Full Answer >>
  12. Where was the Dow Jones when Obama took office?

    When President Obama took office on Jan. 20, 2009, the Dow Jones Industrial Average slumped to 7,949.09, the lowest inaugural ... Read Full Answer >>
  13. When did the Dow Jones Industrial Average (DJIA) begin?

    The Dow Jones Industrial Average (DJIA) was first published on May 26, 1896 by financial reporters Charles Dow and Edward ... Read Full Answer >>
  14. How do you compare the Dow Jones Industrial Average (DJIA) and the Nasdaq?

    The Dow Jones Industrial Average is an index comprised of 30 large, publicly traded U.S. companies that is followed by investors ... Read Full Answer >>
  15. What is the Dow Jones Industrial Average (DJIA) all-time high?

    The Dow Jones Industrial Average (DJIA) is inching up and recording new highs during the month of September 2014. On Thursday, ... Read Full Answer >>
  16. Why is the Dow Jones Industrial Average (DJIA) price weighted?

    A price-weighted index uses the price per share for each stock included and divides the sum by a common divisor, usually ... Read Full Answer >>
  17. Who were the original Dow Jones Industrial Average (DJIA) companies?

    The Dow Jones Industrial Average was created in 1896 by Charles Dow and originally consisted of 12 companies: American Cotton ... Read Full Answer >>
  18. Where can I find the P/E ratios for the Dow and S&P 500?

    When it comes to valuing stocks, the price-to-earnings (P/E) ratio is one of the oldest and most frequently used metrics. ... Read Full Answer >>

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