What's the difference between the Dow Jones Industrial Average and the S&P ?

The Dow Jones Industrial Average DJIA is the oldest and best-known stock market index. It measures the daily price movements of 30 large American companies.

It is widely viewed as a proxy for general market conditions.

Started inthe DJIA is comprised of 30 North American blue-chip stocksapproximately two-thirds of which are represented by companies producing industrial and consumer goods. The rest are chosen from all the major sectors of the economy including information technology, entertainment, and financial services.

As of Decemberthe top constituents of the DJIA include Apple Inc. The DJIA is a price-weighted indexwhich means that the sum of the component stock prices is divided by a divisor.

Instead of dividing by the number of stocks in the average, as is done in an arithmetic averagethe Dow divisor is used for this index. The purpose of this divisor, which is continually adjusted, is to smooth out the effects of stock splits and dividends.

The result is that the DJIA is affected only by changes in the stock prices, so stocks with a higher share price have a larger impact on the Dow's movements. In other words, those stocks are more valuable today than they were the previous day. Over time, the DJIA can be used as a benchmark for the economy.

^DJI Components | Dow Jones Industrial Average Stock - Yahoo Finance

Get comfortable with this important market index - Read Why The Dow MattersHow Now, Dow? What Moves the DJIA? Dictionary Term Of The Day. A measure of what it costs an investment company to operate a mutual fund. Latest Videos PeerStreet Offers New Way to Bet on Housing New to Buying Bitcoin?

Dow Jones Industrial Average - Wikipedia

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Companies that make up the Dow Jones Industrial Average

What does the Dow Jones Industrial Average measure? By Investopedia Updated June 6, — 3: Learn how many components comprise the Dow Jones Industrial Average and understand dow jones industrial market capitalization stock index's origins and how it is The best place to find a list of all thirty stocks included in the Dow Jones Industrial Average DJIA is the "Historical Learn how the Dow Jones Industrial Average has told the story of the broad market through its simple, price-weighted calculation Find out how the Dow Jones Industrial Average tracks the health of the U.

This fluctuating number indicates the Here are four strategies for trading the Dow Jones Industrial Average DJIAone of the oldest and most widely-followed equity indices in the world.

Learn about the performance of the Dow Jones Industrial Averages DJIA through the decades. Although the DJIA only includes 30 stocks, it can tell you a lot about the market as a whole.

Learn about the advantages and disadvantages of stock indexes and passive index funds. Discover how option software stock trading tips india is an opportunity cost to using index funds.

Find out who work from home jobs east lothian major players are in the Dow Jones Industrial Average and who has been kicked out recently.

Read about three heavily shorted stocks that are components of the Dow Jones Industrial Average, including one company with recent success. Investopedia explains the five most talked about indices and what makes them all different. Learn about the Dow Jones Index futures contracts available and obtain step-by-step instruction on how to trade the stock index futures. The Dow Jones Industrial Average DJIA continues to be an important indicator of the economy, though some say the DJIA doesn't have the same import as it once did.

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A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. A statistical technique used to measure and quantify the level of financial risk within a firm or investment portfolio over Content Library Articles Terms Videos Guides Slideshows FAQs Calculators Chart Advisor Stock Analysis Stock Simulator FXtrader Exam Prep Quizzer Net Worth Calculator.

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