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Dow Jones Industrial Average

A stock market index founded in 1896 by Charles Dow tracking 30 companies in various industries thought to be representative of the American economy. It is a price-weighted index, meaning that stocks with higher prices per share affect the average more. It also scales its averages to account for stock splits and other changes in the companies tracked. All stocks tracked in the DJIA are traded on either the New York Stock Exchange or NASDAQ. It is considered the premier securities index in the United States.


Dow Jones Industrial Average (DJIA).

The Dow Jones Industrial Average (DJIA), sometimes referred to as the Dow, is the best-known and most widely followed market indicator in the world. It tracks the performance of 30 blue chip US stocks.

Though it is called an average, it actually functions more like an index. The DJIA is quoted in points, not dollars. It's computed by totaling the weighted prices of the 30 stocks and dividing by a number that is regularly adjusted for stock splits, spin-offs, and other changes in the stocks being tracked.

The companies that make up the DJIA are changed from time to time. For example, in 1999 Microsoft, Intel, SBC Communications, and Home Depot were added and four other companies were dropped. The changes are widely interpreted as a reflection of the emerging or declining impact of a specific company or type of company on the economy as a whole.

References in periodicals archive ?
Table 1 also shows that even though there are significant associations between the currencies and both the DJIA and S&P500, they are not strong.
The paper begins by defining arbitrage and describing the relationship between Diamonds and the DJIA index.
The company expects normal operation of the DJIA Wednesday using its redundant market-data system.
The three long-time components of the DJIA were replaced by drug manufacturer Pfizer, and two nonmanufacturing businesses (Verizon Communications, Inc.
BOSTON -- SPDR[R] Dow Jones Industrial Average ETF Trust (the "SPDR DJIA Trust") (NYSE:DIA - News) today announced that it will make an additional 2010 income distribution.
The DJIA is price weighted so extremely high stock prices tend to distort the index while very low stock prices have little impact.
Contrarily, over the multi-year bull market from October 2002 to October 2007, the DJIA almost doubled in value (up 94.
As usual, FX market price action was generally correlated to risk trends, as the S&P 500 and DJIA gained 0.
Electronic data available on the Internet, such as historical data related to the DJIA, was downloaded from the financial sites of www.
National Lead - Active as NL Industries; removed from DJIA in 1916