Dow Jones 65 Composite Average

AAA

DEFINITION of 'Dow Jones 65 Composite Average'

A composite index that measures changes within the 65 companies that make up three Dow Jones averages: the 30 stocks that form the Dow Jones Industrial Average (DJIA), the 20 stocks that make up the Dow Jones Transportation Average (DJTA) and the 15 stocks of the Dow Jones Utility Average (DJUA). The Dow Jones 65 Composite, like the three sub-indexes, is price-weighted.


INVESTOPEDIA EXPLAINS 'Dow Jones 65 Composite Average'

All of the Dow Jones averages are price-weighted indexes. For this type of index, stocks with higher prices will influence the direction of the average more than lower prices, regardless of the actual size of the company. Most broad market indexes are market-cap weighted, such as the Nasdaq-100 and Standard & Poor's 500.

The combination of the Dow Jones Industrial, Transportation and Utility averages used to be a broad measure of the U.S. economy, as those sectors were once the lion's share of economic production. This is no longer the case, as industries such as healthcare, technology and finance now include some of the largest companies in the world. While the DJIA has, in recent years, included some modern companies in its "industrial" average (such as Microsoft and Intel), most of the Dow Jones 65 stocks are focused in old-line businesses, and do not appear to represent a broad measure of economic performance.

RELATED TERMS
  1. Dow Jones Industrial Average - ...

    The Dow Jones Industrial Average is a price-weighted average ...
  2. Dow Jones Transportation Average ...

    A price-weighted average of 20 transportation stocks traded in ...
  3. Dow Jones Utility Average - DJUA

    The Dow Jones Utility Average is a price-weighted average of ...
  4. Standard & Poor's 500 Index - S&P ...

    An index of 500 stocks chosen for market size, liquidity and ...
  5. Price-Weighted Index

    A stock index in which each stock influences the index in proportion ...
  6. Dow Jones Asian Titans 50 Index

    A market capitalization-weighted index of Asia-Pacific stocks ...
Related Articles
  1. How Now, Dow? What Moves The DJIA?
    Bonds & Fixed Income

    How Now, Dow? What Moves The DJIA?

  2. Barking Up The Dogs Of The Dow Tree
    Investing Basics

    Barking Up The Dogs Of The Dow Tree

  3. Benchmark Your Returns With Indexes
    Mutual Funds & ETFs

    Benchmark Your Returns With Indexes

  4. Get Positive Earnings In The Negative-Sum ...
    Active Trading

    Get Positive Earnings In The Negative-Sum ...

comments powered by Disqus
Hot Definitions
  1. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  2. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  5. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  6. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
Trading Center