hocus-focus/Getty Images
The Dow Jones Industrial Average (DJIA) is one of the world s oldest stock market indexes, consisting of 30 US corporate giants.
Despite some criticism, the Dow remains highly respected, a reliable gauge of the overall stock market and the US economy.
While you can t invest in the DJIA itself, you can buy an index fund that tracks it, or the individual stocks.
When people talk about the Dow, the Dow Jones, or the Dow 30, they re referring to the Dow Jones Industrial Average (DJIA). And to understand the Dow, you must understand it s actually two things: a stock market index of 30 chosen companies and a benchmark number.
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The Dow Jones Industrial Average is one of the most-watched stock index in the world - here s how it works and why it s so influential
The Dow Jones Industrial Average is one of the most-watched stock index in the world - here s how it works and why it s so influential
Jim ProbascoDec 15, 2020, 22:04 IST
To many investors, the Dow Jones Industrial Average and its performance is synonymous with that of the stock market itself.hocus-focus/Getty Images
The
Dow Jones Industrial Average (DJIA) is one of the world s oldest stock market indexes, consisting of 30 US corporate giants.
Despite some criticism, the Dow remains highly respected, a reliable gauge of the overall stock market and the US economy.
The Dow Jones Industrial Average is one of the most-watched stock index in the world here s how it works and why it s so influential Jim Probasco To many investors, the Dow Jones Industrial Average and its performance is synonymous with that of the stock market itself. The Dow Jones Industrial Average (DJIA) is one of the world s oldest stock market indexes, consisting of 30 US corporate giants. Despite some criticism, the Dow remains highly respected, a reliable gauge of the overall stock market and the US economy. While you can t invest in the DJIA itself, you can buy an index fund that tracks it, or the individual stocks.
Market Crash 1929, Mystery Unraveled?
In the twenties of the last century, the world, and especially the United States, experienced an economical high. As a result of this, share and stock prices rose to unprecedented heights, beyond reasonable values. The underlying economy had decreased in strength without this being reflected on the stock exchange. Investors were euphoric and stock prices were forced up against all economic logic. (1)
In my view the causes for the rise of the Dow Jones to unprecedented highs were the introduction of a new calculation method for the Dow on 1 October 1928, the introduction of the Dow-divisor, the extension of the Dow from 20 to 30 funds on 1 October 1928 and splitting the stock between October 1928 and November 1929 which was the last part of the acceleration phase of the second industrial revolution. These 3 factors caused the Dow to rise exponentially from 238 tot 381 points in de period October 1928 to September 1929, while the underlying e