Dow Jones Industrial Average

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Dow Jones Industrial Average

The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. The Dow, as it is called, is a barometer of how shares of the largest US companies are performing. There are hundreds of investment indexes around the world for stocks, bonds, currencies, and commodities.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. 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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
The method is applied to rolling 5000 trading day intervals of closing values of three Dow Jones Averages (Industrial--DJ1A, Transportation--DJTA, and Utility--DJUA) for the period 5/28/1936 to 1/26/2004, which comprises 17,000 trading days.
During the third quarter of 2002 CDR's stock index dropped 19.7% compared with an 18% decline in the Dow Jones Average.
Dow Jones average and the Nasdaq composite index upset major stock markets around the world, including the Jakarta Stock Exchange.
The Dow Jones average spurts like a shaken Coke, while the unemployment rate plunges to depths not seen since WWII.
Investors reacted nervously to the announcement, with the Dow Jones average losing an earlier 106-point gain almost immediately.
Barney's camera angle appears to throw all this authority off balance by tilting everything slightly to the right, but the figure remains staunchly vertical, as if securely anchored by her lineage - not to mention a booming market and a surging Dow Jones average.
In contrast to many forecasters, Bostian foresaw a booming decade, with the Dow Jones average hitting 5,000 by 1995 and perhaps 10,000 "around the turn of the century."
Since the December 1996 speech by Alan Greenspan, chairman of the Federal Reserve, when he talked about "irrational exuberance" in the stock market, the Dow Jones average has moved up another 30%!
One of Hightower's all-time better ideas (and he has quite a few) is that the media should either replace its daily dwelling on the Dow Jones Average (two full pages of stock quotations in most newspapers) with the Doug Jones Average, Doug Jones standing for the average American.
Unlike the S&P 500, for which the Stock Price Notification Service is available, no information prior to the news release announcing the roster change in the Dow Jones Average is available to the general public.
Since flirting with the magic 3,000 barrier this past summer, the Dow Jones average of 30 industrials has been going down steadily, and, in fact, has fallen a bit more than 20 percent.
shares ended mixed Friday, with the Dow Jones average inching up on strong consumer sentiment data.