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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.
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Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

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References in periodicals archive ?
Therefore, in this study, we only examine the profitability from Rule #(1), #(2), and #(4) with short moving period of 5 and long moving period of 100 on the DJIA, the NASDAQ, and the S&P.
In relating the DJIA index to the NHIS health outcome data, we must recognize that the NHIS questions are generally retrospective.
The other index seasonal coefficients, ranging from 1.04 for DJIA to 0.77 for S&P 500 index, are significant at the 10% and/or 5% levels.
Finally, the Laplacian Eigenmaps is used to extract the chaotic attractor from the redundant reconstructed phase space of DJIA, so that the attractor of this financial system embedded in a low-dimensional manifold can be decided.
On the other hand, the DJIA lost almost 8% in May 2010, and the S&P 500 fell by 6.3% in May 2012.
To minimize this error, and its corresponding minimum mean error, the optimal number of harmonics for the adjustment of the DJIA (t) / GF (t) time series within the MATLAB simulation is found to be N = 55, E = 1.55 x [10.sup.-14].
The DJIA of 10,783.01 at the close of 2004, coupled with a 973% increase since 1976, would yield a $32,190 deduction.
Already off 18% from its early 2000 peak, when the DJIA reopened the following Monday it fell an additional 7.13% and the bear market became official.
In 1999, American Equity became the first carrier to offer the Dow Jones 30 (DJIA).
We use a linear model, the classic OLS (Ordinary Least Squares) method, where explained variable was the return rate on WIG or WIG20 index, and explaining variables the return rates from selected indexes for the American market DJIA (Dow Jones Industrial Average), DJCA (Dow Jones Composite Average), S&P500 (Standard & Poor 500), Nasdaq and Nasdaq 100, the British market (FTSE100 and FTSE250) and the German market (DAX).
In this analysis, market indices, such as the S&P 500 and DJIA will be used as a proxy for the overall market.
We look at historical episodes in the United States over the last one hundred years of major stock market crashes in the Dow Jones industrial average (DJIA), the S&P 500 and the NASDAQ indices.