Dow Jones Industrial Average: A Comprehensive Overview

Overview

The Dow Jones Industrial Average (DJIA) is one of the oldest and most widely followed stock market indices in the world. It consists of 30 large, blue-chip companies listed on the New York Stock Exchange (NYSE) and Nasdaq Stock Market. The DJIA is a price-weighted index, meaning that the stock with the highest price has the greatest influence on the overall index value.

Historical Performance

The DJIA was created in 1896 by Charles Dow and Edward Jones as a way to track the performance of the leading industrial companies in the United States. Over the years, the index has undergone several changes, including the addition and removal of companies. Despite these changes, the DJIA has remained a reliable indicator of the overall health of the U.S. stock market.