Investing For Beginners: What is The Dow Jones Index (DJIA)

If you ever listen to financial news, you’ve no doubt heard the term the Dow, or the Dow Jones. But do you know what it is?

Dow Jones Index & price
https://www.tipranks.com/index/dow-jones

Also known as the DJIA or Dow 30. It is one of the most widely watched stock market indices in the world and serves as a benchmark of the health of the US economy.
The Dow Jones tracks the performance of 30 large publicly owned companies that are traded on the New York Stock exchange and Nasdaq.

Unlike the S&P 500, it is not weighted by market capitalization, rather it is weighted by price. This means that companies with the highest stock prices have a greater influence on the index’s performance. Names in the index include Apple, Microsoft, Johnson & Johnson, Walt Disney, Nike, and Coca-Cola.

The Dow is calculated by taking the sum of the 30 stocks in the index and dividing them by a divisor, known as the Dow Divisor. This divisor is adjusted when certain events take place, for example, stock splits or mergers.

Companies from all major sectors are included in the Dow index, apart from transportation and utilities which each have their own index.

If you want to search for stocks listed on the DJIA, then look no further than the TipRanks Dow Jones stock page. It presents all the data you need about the index and the stocks in the index and can be reached from the TipRanks homepage.



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