Dow Jones Industrial Average

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Dow Jones Industrial Average

A look at the history of the DJIA, the composition of the DJIA and a trading system to follow the DJIA.

Overview

The Dow Jones Industrial Average (DJIA) has been considered one of the most important indicators of the overall condition of the stock market since it's creation in the late 19th century. The DJIA is a price-weighted average of 30 companies. These companies are perceived to be the largest and most influential companies (blue chip stocks and primarily industrial) on the US markets. The 30 companies are chosen by the editors of the Wall Street Journal (published by Dow Jones & Company), which has been publishing the Dow Jones Averages since October 7, 1896. The DJIA is calculated by adding the prices of the 30 stocks and dividing by an adjusted denominator. [More...]