The value of the Dow is not the actual average of the prices of its component stocks, but rather the sum of the component prices divided by a divisor, which changes whenever one of the component stocks has a stock split or stock dividend, so as to generate a consistent value for the index.Since the divisor is currently less than one, the value of the index is larger than the sum of the component prices.Although the Dow is compiled to gauge the performance of the industrial sector within the American economy, the index's performance continues to be influenced by not only corporate and economic reports, but also by domestic and foreign political events such as war and terrorism, as well as by natural disasters that could potentially lead to economic harm.
The averages are named after Dow and one of his business associates, statistician Edward Jones. market index after the Dow Jones Transportation Average, which was also created by Dow.
It is an index that shows how 30 large publicly owned companies based in the United States have traded during a standard trading session in the stock market. The Industrial portion of the name is largely historical, as many of the modern 30 components have little or nothing to do with traditional heavy industry.
The average is price-weighted, and to compensate for the effects of stock splits and other adjustments, it is currently a scaled average.
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Past performance is no guarantee of future results.
, also called DJIA, the Industrial Average, the Dow Jones, the Dow Jones Industrial, ^DJI, the Dow 30 or simply the Dow, is a stock market index, and one of several indices created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow.The industrial average was first calculated on May 26, 1896.Market Data is delayed by 15 minutes and is for informational and/or educational purposes only.In certain circumstances, securities with respect to which the relevant exchange has commenced delisting proceedings may continue to be traded pending appeal of that determination.To view a list of securities that are subject to delisting, including those that continue to be traded pending appeal, please click here.CUSIP identifiers have been provided by CUSIP Global Services, managed on behalf of the American Bankers Association by Standard & Poor’s Financial Services, LLC, The CUSIP Database, © Morningstar, Inc. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely.