Dow 30

  

The movie tag line: Two guys meet in a bar and decide to choose 30 large, publicly owned companies to track and use as an index for the entire stock market.

We didn’t say it was a hit movie.

Created by the former editor of the Wall Street Journal, Charles Dow and his business partner Edward Jones established the Dow 30 in 1896, and today investors all over the world refer to the Dow Jones Industrial Average, or just the “Dow,” when they want to evaluate the market after a standard trading session. The 30 companies that are tracked change on a regular basis as their stocks and their industries gain or lose in popularity.

Too bad there wasn’t an Apple in 1896.

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Finance: What is the Dow Jones Industria...2710 Views

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finance a la shmoop- what is the Dow Jones Industrial Average? well it's just

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an index. it's a basket of 30 industrial stocks hence the catchy industrial word [list of the 30 stocks involved in the Dow]

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in there and it was started in 1896 by Charles Dow and Edward Jones sort of the

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Coke and Pepsi of stock averages in the day .worth noting is the fact that while

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the Dow average is quoted often in the press it's not something that real Wall

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Street traders really rely on that much as a market place holder anymore. why?

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well because the Dow comprises only 30 stocks. it isn't really a broad market [Dow Jones in the trash]

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representation, and you know the way the S&P 500 is the 500 is bigger than 30. Big

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Brother has way more stocks and is thus way more liquid than the relatively

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blippi set of 30 stocks that the Dow offers. over time the Dow has changed as

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companies were bought and/or died and or just withered and became no longer

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relevant. i.e. newspaper industry. which means that this thing has gone through

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more faces than Kanye West .yeah. [Kanye West faces pictured]

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