All index traders trade it…
But do we know anything about The Dow Jones?
I’m going to break down what it is, some interesting facts about the Index and what companies makes up the index.
Save it because it’s all you need for the Dow Jones.
WHAT IS THE DOW JONES?
The Dow Jones 30, or DJIA or “The Dow” is a stock market index that reflects the performance of 30 large, publicly traded companies listed on the New York Stock Exchange and the NASDAQ.
INTERESTING FACTS!
1. The index was created by Charles Dow, editor of the Wall Street Journal, in 1896.
2. The DJIA is calculated by taking the sum of the prices of the stocks of the 30 companies included in the index, and then dividing that sum by a divisor, which is adjusted periodically to account for stock splits and other corporate actions.
3. The DJIA is considered a “price-weighted” index, meaning that the stocks with higher prices have a greater impact on the index’s value.
4. The DJIA is one of the oldest and most widely followed stock market indices in the world, and it is often used as a barometer of the overall performance of the U.S. stock market.
5. The DJIA is composed of a mix of blue-chip and cyclical stocks, which means that it tends to be more stable than some other stock market indices, but it can also be affected by economic and market cycles.
6. The DJIA is often abbreviated as “the Dow” and is quoted in points, rather than dollars. For example, a DJIA value of 32,920 means that the index is at 32,920 points.
WHAT COMPANIES MAKE UP THE DOW JONES?
3M
American Express
Apple
Boeing
Caterpillar
Chevron
Cisco Systems
The Coca-Cola Company
DuPont
Exxon Mobil
Goldman Sachs
The Home Depot
IBM
Intel
Johnson & Johnson
JPMorgan Chase
McDonald’s
Merck
Microsoft
Nike
Pfizer
Procter & Gamble
Travelers
UnitedHealth Group
United Technologies
Verizon Communications
Visa
Walmart
The Walt Disney Company
Exxon Mobil
What Index would you like to know about next?
I’ll write about it and post it here.
Trade well, live free.
Timon
MATI Trader
