Dow Jones Industrial Average (DJIA)
Previously, we looked at what the S&P 500 index is all about.
Right now, let’s explore what “Dow Jones Industrial Average” means, shall we?
Source: giphySo, the Dow Jones Industrial Average (DJIA) is a stock market index tracking 30 large companies listed on the US’ New York Stock Exchange (NYSE) and the NASDAQ.
DJIA made news on Thursday as it entered a bear market, ending an 11-year bull run and the longest in US history at that.
The index, which was launched in 1896, is named after Charles Dow and Edward Jones. DJIA is often referred to as the “Dow” too.
In the DJIA, components with higher share prices are given greater weight. Therefore, a higher percentage move in a higher-priced stock will have a larger impact on the index.
That means DJIA is price-weighted, as opposed to the S&P 500, which...
