Investopedia

Continue to Site »

Dow Jones 65 Composite Average

Filed Under » , ,
Dictionary Says

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 Says

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.

Articles Of Interest

  1.

    Barking Up The Dogs Of The Dow Tree

    One well-known and successful strategy for cashing in on dividends is the Dogs of the Dow. Here's what you need to know about them.

  2. Benchmark Your Returns With Indexes

    If your portfolio is always falling short, you may not be making an apples-to-apples comparison.

  3. How Now, Dow? What Moves The DJIA?

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

  4. The NYSE And Nasdaq: How They Work

    Learn some of the important differences in the way these exchanges operate and the securities that trade on them.

  5. 5 ETFs Flaws You Shouldn't Overlook

    Despite their popularity, exchange traded funds have some drawbacks that investors should know about.

  6. Using The Price-To-Book Ratio To Evaluate Companies

    The P/B ratio can be an easy way to determine a company's value, but it isn't magic!

  7. Which Mutual Fund Market Cap Suits You?

    Different funds invest in companies with different market caps. Find out which is right for you.

  8. Liquidity Vs. Solvency

    Learn about the differences between these two words and how each one is used in the stock market.

  9. How To Make A Winning Long-Term Stock Pick

    Discover the key elements of a good long-term investment and how to find them.

  10. Should You Invest Your Entire Portfolio In Stocks?

    It is true that stocks outperform bonds and cash in the long run, but that statistic doesn't tell the whole story.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  2. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  3. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  4. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  5. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  6. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.
Trading Center