A:

Dow Jones, or more precisely "Dow Jones & Company", is one of the largest business and financial news companies in the world. The firm was founded in 1896 by Charles Dow, Edward T. Jones, and Charles Bergstresser. In 1889 they founded The Wall Street Journal, which remains one of the most influential financial publications.

It is easy to confuse Dow Jones with the Dow Jones Industrial Average (DJIA). Often referred to as "the Dow", the DJIA is one of the most watched stock indexes in the world, containing companies like General Electric, Microsoft, Coca-Cola, and Exxon. Dow Jones (the company) owns the Dow Jones Industrial Average as well as many other indexes that represent different sectors of the economy.

In the world of finance, you'll often hear people ask, "How did New York do today?" or "How did the market perform today?" In both cases, these people are likely referring to the DJIA as it is the most widely used index, above both the S&P 500 Index and the Nasdaq Composite Index.

 

To find out how the Dow is calculated, see Calculating the Dow Jones Industrial Average. For more background on stock indexes in general, see our index investing tutorial.

RELATED FAQS
  1. Is the Dow Jones a public company?

    Find out how the Dow Jones Industrial Average tracks the health of the U.S. economy. This fluctuating number indicates the ... Read Answer >>
  2. When can you trade the stocks in the Dow Jones Industrial Average (DJIA)?

    Find out when you can trade shares linked to the Dow Jones Industrial Average during NYSE and Nasdaq trading sessions. Read Answer >>
  3. When was the Dow Jones Industrial Average first calculated?

    Charles Henry Dow was born on a farm in Connecticut on November 6, 1851. Farming didn't suit Charles Dow, however, so he ... Read Answer >>
  4. What is the Dow Jones Industrial Average (DJIA) all-time high?

    Inching ever higher, the Dow Jones recorded new highs in May 2015. Since the index was first calculated in 1896, it has grown ... Read Answer >>
  5. What is the difference between the Dow and the Nasdaq?

    The Dow refers to the Dow Jones Industrial Average (DJIA), an important index that indicates how well the overall stock market ... Read Answer >>
Related Articles
  1. Investing

    Why The Dow Matters

    Although the DJIA only includes 30 stocks, it can tell you a lot about the market as a whole.
  2. Investing

    Giants of Finance: Charles Dow

    Find out how this financial visionary helped everyday people enter the world of finance.
  3. Investing

    Understanding And Playing The Dow Jones Industrial Average

    Learn strategies for investing in this price-weighted index and how to interpret its movements.
  4. Financial Advisor

    DJIA vs. Dow Transport: A Telling Divergence?

    The Dow Transport Index and the Dow Jones Industrial Average are sending mixed signals. What does it mean?
  5. Investing

    Dow Theory Gores Stock Market's Bears

    Bear Hunting: The Dow Jones Transportation Average's new high is a bullish indicator
  6. Investing

    Dow Touches 19,000

    As markets continue their run higher, investors wonder what the next stop is.
  7. Investing

    4 Famous Companies Dropped From the Dow Jones

    Learn about some of the largest and most famous companies that have been removed from the Dow Jones Industrial Average (DJIA) over its 119-year history.
  8. Investing

    5 Stocks Commanding the Dow Bull Market (MMM, CVX)

    Just 5 stocks—United Healthcare, 3M, Chevron, Caterpillar and IBM—are responsible for 81% of the gain in the Dow Jones Industrial Average so far this year, which is up around 2.5% YTD.
  9. Investing

    RWR Vs. RWX: Comparing Real Estate ETFs

    The real estate market is still booming in 2016. Discover analyses of two real estate ETFs, and learn about the similarities and differences between them.
  10. Insights

    Corporations Kicked From The Dow Jones

    The Dow measures the economic condition of the United States. Here are some corporations that have fallen out of favor.
RELATED TERMS
  1. Dow Jones Industrial Average - DJIA

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

    A price-weighted average of 20 transportation stocks traded in ...
  3. The Global Dow

    An equal-weighted stock index consisting of the stocks of 15 ...
  4. Dow Jones Sustainability World Index

    A global index consisting of the top 10% of the largest stocks ...
  5. STOXX

    A series of market indexes that are representative of the European ...
  6. Rule Of 18

    A rule whereby the sum of the inflation rate and the P/E ratio ...
Hot Definitions
  1. Covariance

    A measure of the degree to which returns on two risky assets move in tandem. A positive covariance means that asset returns ...
  2. Liquid Asset

    An asset that can be converted into cash quickly and with minimal impact to the price received. Liquid assets are generally ...
  3. Nostro Account

    A bank account held in a foreign country by a domestic bank, denominated in the currency of that country. Nostro accounts ...
  4. Retirement Planning

    Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve ...
  5. Drawdown

    The peak-to-trough decline during a specific record period of an investment, fund or commodity. A drawdown is usually quoted ...
  6. Inverse Transaction

    A transaction that can cancel out a forward contract that has the same value date.
Trading Center