Dow 30

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DEFINITION of 'Dow 30'

Commonly referred to as just the "Dow," the Dow 30 was created by Wall Street Journal editor Charles Dow and got its name from Dow and his business partner Edward Jones. The index was developed as a simple means of tracking U.S. market performance in an age when information flow was often limited.


Also known as the "Dow Jones Industrial Average".

BREAKING DOWN 'Dow 30'

A spin-off of the Dow Jones Transportation Average, consisting primarily of railroad issues in the early years, the Dow expanded to 30 stocks in 1928, where it remains today. The composition of the index changes regularly, as stocks and the industries it represents fall in and out of favor.

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RELATED FAQS
  1. 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 ... Read Answer >>
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    The Dow is a list, or index, of companies considered to be good indicators of the market's strength. Simply put, these companies ... Read Answer >>
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