What is “the Dow”?
The DJIA has a number of nicknames – the Dow Jones, the Dow 30 and the Industrial Average. Most commonly, however, it is simply known as the Dow. It should not be confused with the
.Purpose of the Dow
The Dow is one of the most eagerly watched indices in the world by
because it is highly indicative of US and most representative of global attitudes towards stock. A testament to this is the fact that when analysts refer to the “the being up”, they are generally referring to the Dow.Although the Dow’s main purpose is to judge the performance of the industrial sector of the US economy, it also recognises events outside the control of the 30 key companies which may have a bearing on the strength of the
. These could include acts of war, terrorism or political unrest which may occur abroad or at home, as well as natural disasters that could negatively impact the global or domestic economy.History of the index
The index was invented in 1896 by Charles Dow, making it one of the oldest Dow Jones Transportation AverageThe Dow Jones Transportation Average (DJTA) is the US stock ... More).
in the world (second only to theIn its early days it represented only 12 stocks from leading American industries before the number was expanded to the 30 largest
, and essentially most economically influential, companies in the US (excluding railroad stocks, which were and remain listed on the Dow Jones Transportation Average index).More info:
Dow Jones Industrial Average wikipedia