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".

INVESTOPEDIA EXPLAINS '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 TERMS
  1. Index

    A statistical measure of change in an economy or a securities ...
  2. Dow Jones Industrial Average - ...

    The Dow Jones Industrial Average is a price-weighted average ...
  3. Broad-Based Index

    An index designed to reflect the movement of the entire market. ...
  4. Dow Jones U.S. Market Index

    A market-capitalization-weighted index maintained by Dow Jones ...
  5. Dow Jones Transportation Average ...

    A price-weighted average of 20 transportation stocks traded in ...
  6. Dow Divisor

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RELATED FAQS
  1. What are the "Dogs of the Dow"?

    The Dow Jones Industrial Average (DJIA) is an index of 30 of the most significant, mature and respected companies in the ... Read Full Answer >>
  2. 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 Full Answer >>
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