Learn About Dow Jones Industrial Average.

Read about Everything you should know about the Dow Jones Industrial Average below.

The Dow Jones Industrial Average is a stock market index that tracks the performance of 30 big publicly traded firms in the United States. It is commonly referred to as the Dow and is used to gauge the performance of the US stock market. It doesn’t necessarily follow the top 30 corporations, but rather those that best illustrate the diversity of the American economy.

Let’s briefly look at what Don Jones is.

What is Dow Jones?

Dow Jones is one of the world’s leading business and financial news organizations. The corporation was founded in the nineteenth century by Charles Dow, Edward Jones, and Charles Bergstresser. Aside from the well-known Dow Jones Industrial Average, the firm has established a number of other market indices.

The Dow Jones Industrial Average’s 30 firms are mentioned below.

Dow Jones Today – The Current “Dow 30”.

  • Cisco Systems (Nasdaq: CSCO).
  • Goldman Sachs (NYSE: GS).
  • American Express (NYSE: AXP).
  • 3M (NYSE: MMM).
  • Amgen (Nasdaq: AMGN).
  • Apple (Nasdaq: AAPL).
  • Boeing (NYSE: BA).
  • Caterpillar (NYSE: CAT).
  • Chevron Corporation (NYSE: CVX).
  • Coca-Cola (NYSE: KO).
  • Dow Inc. (NYSE: DOW).
  • The Home Depot (NYSE: HD).
  • Honeywell (NYSE: HON).
  • IBM (NYSE: IBM).
  • Intel (Nasdaq: INTC).
  • Johnson & Johnson (NYSE: JNJ).
  • JPMorgan Chase (NYSE: JPM).
  • McDonald’s (NYSE: MCD).
  • Merck & Co. (NYSE: MRK).
  • Microsoft (Nasdaq: MSFT).
  • Nike (NYSE: NKE).
  • Procter & Gamble (NYSE: PG).
  • Saleseforce.com (NYSE: CRM).
  • The Travelers Company (NYSE: TRV).
  • UnitedHealth Group (NYSE: UNH).
  • Verizon (NYSE: VZ).
  • Visa (NYSE: V).
  • Walmart (NYSE: WMT).
  • Walgreens Boots Alliance (Nasdaq: WBA).
  • The Walt Disney Company (NYSE: DIS).

Like the economy, the Dow Jones Industrial Average is always changing. Every few years, a faltering Dow component is replaced by a more powerful firm. The Dow Jones Industrial Average is intended to represent the largest companies in the economy. As a result, the history of the Dow is essentially a history of the United States economy.

Dow Jones Industrial Average History.

Obviously, Dow Jones is made up of a varied group of enterprises. The current list isn’t as as “industrial” as the name implies, but that wasn’t always the case. The Dow Jones Industrial Average was founded in 1896, at a time when the United States’ economy was heavily reliant on commodity production and extraction. The index consisted of only 12 stocks at the time:

  • National Lead.
  • General Electric (NYSE: GE).
  • American Cotton Oil.
  • American Sugar.
  • American Tobacco.
  • North American Company.
  • Chicago Gas.
  • Distilling & Cattle Feeding.
  • Laclede Gas.
  • Tennessee Coal, Iron, and Railroad.
  • S. Leather Preferred.
  • S. Rubber.

The Dow Jones Industrial Average increased to 30 stocks in 1928, and it has remained at that level ever then. General Electric was one of the initial 12 firms to join the Dowand remained a member until 2018 when it was replaced by Walgreens Boots Alliance (save for a brief period from 1898 to 1907) It had been an incredible journey with a meaningful conclusion. The Dow Jones Industrial Average (DJIA) is a stock market index that reflects the Information, banking, and products and services companies such as Microsoft (Nasdaq: MSFT), Visa (NYSE: V), and Verizon (NYSE: V) now dominate the American economy (NYSE: VZ).

Facts About the Dow Jones Industrial Average.

The Dow Jones Transportation Average is larger than the Dow Jones Industrial Average, which is the most well-known of the Dow Averages.

Unlike the S&P 500, it is a price-weighted index. A price-weighted index divides the total number of stocks in the index by the price per share of each stock included.

Charles Dow established it to act as a proxy for the US economy as a whole.

The Dow Jones Industrial Average surpassed 27,000 points for the first time on July 11, 2019.

Is it Possible for me to Trade the Dow Jones?

In a technical sense, no. The Dow Jones Industrial Average is an index, not a stock. To put it another way, it is a statistical representation of stocks rather than a stock. You can, however, invest in Dow-tracking mutual funds or exchange-traded funds (ETFs).

Investing in Dow Jones.

When it comes to constructing an investment portfolio, there are a lot of variables to consider, making it tough for inexperienced investors to get started. Financial advisors, on the other hand, can be excellent partners for these investors. 

Asset allocation is one of the most crucial aspects of any financial portfolio. You can build a portfolio for your unique risk level by using a customized allocation plan.

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