The Dow Jones Industrial Average, Dow Jones, or simply the Dow, is a stock market index of 30 prominent companies listed on stock exchanges in the United States.

The DJIA is one of the oldest and most commonly followed equity indexes.

Many professionals consider it to be an inadequate representation of the overall U.S.

stock market compared to a broader market index such as the S&P 500.

The DJIA includes only 30 large companies. It is price-weighted, unlike stock indices, which use market capitalization.

Furthermore, the DJIA does not use a weighted arithmetic mean.

Dow Jones and Stock Trading strategy

The value of the index can also be calculated as the sum of the stock prices of the companies included in the index, divided by a factor, which is currently approximately 0.152.

The factor is changed whenever a constituent company undergoes a stock split so that the value of the index is unaffected by the stock split.

Stock Trading strategy

First calculated on May 26, 1896, the index is the second-oldest among U.S. market indices, after the Dow Jones Transportation Average.

Constituents: 30
Exchanges: New York Stock Exchange; NASDAQ
Foundation: February 16, 1885; 138 years ago (as DJA); May 26, 1896 (as DJIA)
Market cap: US$9.67 trillion; (as of December 31, 2022)
Operator: S&P Dow Jones Indices
Trading symbol: ^DJI; $INDU.DJI; DJIA
Weighting method: Price-weighted index


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