Dow Jones Industrial Average (DJIA)

The Dow Jones Industrial Average (DJIA) is a stock market index that is made up of 30 large companies listed on stock exchanges in the United States. It is the oldest and most widely followed stock market index in the world. The DJIA is often used as a barometer of the overall health of the stock market.

The DJIA was created by Charles Dow in 1896. The original index was made up of 12 companies, including American Cotton Oil, American Sugar, Chicago Gas, Distillers & Cattle Feeders, General Electric, Illinois Central Railroad, Laclede Gas, National Lead, North American Company, Tennessee Coal & Iron, U.S. Rubber, and Western Union.

The DJIA is a price-weighted index, which means that the price of each stock in the index is multiplied by its number of shares outstanding and then added together. The resulting number is divided by a divisor, which is adjusted to reflect changes in the number of shares outstanding of the companies in the index.

The DJIA is a market-capitalization-weighted index, which means that the weight of each stock in the index is based on its market capitalization, or the total value of its outstanding shares. The market capitalization of a company is calculated by multiplying its stock price by its number of shares outstanding.

The DJIA is a price-weighted index, which means that the price of each stock in the index is multiplied by its number of shares outstanding and then added together. The resulting number is divided by a divisor, which is adjusted to reflect changes in the number of shares outstanding of the companies in the index.

The DJIA is a price-weighted index, which means that the price of each stock in the index is multiplied by its number of shares outstanding and then added together. The resulting number is divided by a divisor, which is adjusted to reflect changes in the number of shares outstanding of the companies in the index.