Linear graph of the DJIA from 1896 through March 2008

The Dow Jones Industrial Average (NYSE: DJI), also called the DJIA, Dow 30, or informally the Dow Jones or The Dow) is one of several stock market indices created by nineteenth century Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow. The New York Stock Exchange ( NYSE) is a Stock exchange based in New York City. A stock market index is a method of measuring a section of the Stock market. Dow Jones & Company is an American publishing and financial information firm Charles Henry Dow ( November 6, 1851 – December 4, 1902) was an American Journalist who co-founded Dow Jones & Company Dow compiled the index as a way to gauge the performance of the industrial component of America's stock markets. A stock market, or (equity market is a private or public market for the trading of company Stock and derivatives of company It is the second oldest continuing U. S. market index, after the Dow Jones Transportation Average, which Dow also created. The Dow Jones Transportation Average (also called the "Dow Jones Transports" DJTA) is the oldest U

Today, the average consists of 30 of the largest and most widely held public companies in the United States. The United States of America —commonly referred to as the The "industrial" portion of the name is largely historical—many of the 30 modern components have little to do with heavy industry. The average is price-weighted. A price-weighted index is a Stock market index where each constituent makes up a fraction of the index that is proportional to its price To compensate for the effects of stock splits and other adjustments, it is currently a scaled average, not the actual average of the prices of its component stocks—the sum of the component prices is divided by a divisor, which changes whenever one of the component stocks has a stock split or stock dividend, to generate the value of the index. A stock split or stock divide increases the number of shares in a Public company. The weighted mean is similar to an Arithmetic mean (the most common type of Average) where instead of each of the data points contributing equally to the final average In Mathematics and Statistics, the arithmetic Mean (or simply the mean) of a list of numbers is the sum of all the members of the list divided In Mathematics, a divisor of an Integer n, also called a factor of n, is an integer which evenly divides n without Since the divisor is currently less than one, the value of the index is higher than the sum of the component prices.

History

Linear Logarithmic graph of the DJIA from 1930 with major trend lines

The DJIA was first published in Customer's Afternoon Letter. ^[1]. It was published on May 26, 1896, and represented the average of twelve stocks from various important American industries. Events 451 - The Battle of Avarayr between Armenian rebels and the Sassanid Empire takes place Year 1896 ( MDCCCXCVI) was a Leap year starting on Wednesday (link will display the full calendar of the Gregorian Calendar (or a Leap year Of those original twelve, only General Electric is currently part of the average. The other eleven were:^[2]

• American Cotton Oil Company, distant ancestor of Bestfoods, now part of Unilever
• American Sugar Company, now Amstar Holdings
• American Tobacco Company, broken up in 1911 antitrust action
• Chicago Gas Company, bought by Peoples Gas Light in 1897 (now an operating subsidiary of Integrys Energy Group, Inc.)
• Distilling & Cattle Feeding Company, now Millennium Chemicals, a division of Lyondell Chemical Company
• Laclede Gas Light Company, still in operation as The Laclede Group, removed from the Dow Jones Industrial Average in 1899
• National Lead Company, now NL Industries, removed from the Dow Jones Industrial Average in 1916
• North American Company, (Edison) electric company broken up in the 1940s
• Tennessee Coal, Iron and Railroad Company in Birmingham, Alabama, bought by U.S. Steel in 1907
• U.S. Leather Company, dissolved 1952
• United States Rubber Company, changed its name to Uniroyal in 1961, merged private with B.F. Goodrich in 1986, bought by Michelin in 1990. Hellmann's and Best Foods are brand names that are used for the same line of Mayonnaise and other food products Unilever is a Multi-national corporation, formed of Anglo - Dutch parentage that owns many of the world's Consumer product brands The American Tobacco Company was founded in 1890 by J B Duke as a merger between a number of Tobacco manufacturers including Allen and Ginter and Millennium Inorganic Chemicals is a Hunt Valley MD based chemical company Lyondell Chemical Company is an American multinational corporation based in Houston, Texas. The North American Company was a Holding company incorporated in New Jersey on June 14 1890 and controlled by Henry Villard The Tennessee Coal Iron and Railroad Company (1852-1952 Birmingham (ˈbɝmɪŋhæm is the largest City in the US state of Alabama and is the County seat of Jefferson County. The United States Steel Corporation ( is an integrated Steel producer with major production operations in the United States, Canada, and Central Europe The United States Leather Company (1893-1952 was one of the largest corporations in the United States circa 1900 and one of the original companies in the Dow Jones Industrial Average The United States Rubber Company was founded in Naugatuck Connecticut in 1892 Goodrich Corporation (formerly the BF Goodrich Company), is an American Aerospace manufacturing company based in Charlotte North Carolina Michelin (full name SCA Compagnie Générale des Établissements Michelin) ( based in Clermont-Ferrand in the Auvergne Région

When it was first published, the index stood at 40. 94. It was computed as a direct average, by first adding up stock prices of its components and dividing by the number of stocks in the index. The Dow averaged 5. 3% compounded annually for the 20th century, a record Warren Buffett called "a wonderful century"—when he calculated that to achieve that return again, the index would need to reach nearly 2,000,000 by 2100. Warren Buffett (born August 30 1930 is an American Investor, Businessman, and Philanthropist. ^[3] Many of the biggest percentage price moves in The Dow occurred early in its history, as the nascent industrial economy matured. The index hit its all-time low of 28. 48 during the summer of 1896.

On July 30, 1914, when the New York Stock Exchange closed for the next four months, the index stood at 71. Events 1419 - First Defenestration of Prague. 1502 - Christopher Columbus lands at Guanaja in the Bay Islands off Year 1914 ( MCMXIV) was a Common year starting on Thursday (link will display the full calendar of the Gregorian calendar (or a Common year The New York Stock Exchange ( NYSE) is a Stock exchange based in New York City. 42. Some historians believe the Exchange closed because of a concern that markets would plunge as a result of panic over the onset of World War I. World War I (abbreviated WWI; also known as the First World War, the Great War, and the War to End All An alternative explanation is that Secretary of the Treasury, William Gibbs McAdoo closed the exchange because he wanted to conserve the US gold stock in order to launch the Federal Reserve System later that year with enough gold to keep the US on the gold standard. William Gibbs McAdoo ( October 31, 1863 &ndash February 1, 1941) was an American Lawyer and political leader who served The gold standard is a monetary system in which a region's common media of exchange are paper notes that are normally freely convertible into pre-set fixed quantities of Gold When the markets reopened on December 12, 1914, the index closed at 74. Events 627 - Battle of Nineveh: A Byzantine army under Emperor Heraclius defeats Emperor Khosrau II 's Persian Year 1914 ( MCMXIV) was a Common year starting on Thursday (link will display the full calendar of the Gregorian calendar (or a Common year 56. Thus, the War had not had the predicted impact.

In 1916, the number of stocks in the index was increased to twenty and the new version of the index was 27% smaller than the old index. Finally, it was increased to thirty stocks in 1928, near the height of the "roaring 1920s" bull market. In Investing, Financial markets are commonly believed to have market trends that can be classified as primary trends secondary trends (short-term and secular trends The crash of 1929 and the ensuing Great Depression returned the average to its starting point, almost 90% below its peak, by July 8, 1932, at its intra-day low of 40. The Wall Street Crash of 1929, also known as the ’29 Crash, the Crash of 1929, the Great Crash of 1929, the Great Crash of October 1929 Events 939 - The Major Occultation or Ghaybat el-Kubra of Muhammad al-Mahdi 1099 - First Crusade: 15000 Year 1932 ( MCMXXXII) was a Leap year starting on Friday of the Gregorian calendar. 56; closing at 41. 22. The high of September 3, 1929 at 381. Events 36 BC - In the Battle of Naulochus, Marcus Vipsanius Agrippa, Admiral of Octavian, defeats Sextus Pompeius Year 1929 ( MCMXXIX) was a Common year starting on Tuesday (link will display the full calendar of the Gregorian calendar. 17 would not be surpassed until 1954, in inflation-adjusted numbers. Year 1954 ( MCMLIV) was a Common year starting on Friday (link will display full 1954 Gregorian calendar) However, the bottom of the 1929 DJIA crash came just 2 1/2 months later on November 13, 1929, when intra-day it was 195. Events 1002 - English king Ethelred orders the killing of all Danes in England, known today as the St Year 1929 ( MCMXXIX) was a Common year starting on Tuesday (link will display the full calendar of the Gregorian calendar. 35; closing slightly higher at 198. 69. ^[4]

• The largest one-day percentage gain in the index, 15. 34%, happened on March 15, 1933, in the depths of the 1930s bear market. Events 44 BC - Julius Caesar, Dictator of the Roman Republic, is stabbed to death by Marcus Junius Brutus, Year 1933 ( MCMXXXIII) was a Common year starting on Sunday (link will display full calendar of the Gregorian calendar. In Investing, Financial markets are commonly believed to have market trends that can be classified as primary trends secondary trends (short-term and secular trends
• The post-World War II bull market, which brought the market well above its 1920s highs, lasted until 1966. World War II, or the Second World War, (often abbreviated WWII) was a global military conflict which involved a majority of the world's nations, including

The Dow fell 22. 61% on Black Monday (1987). In financial markets Black Monday refers to Monday, October 19, 1987, when Stock markets around the world crashed, shedding a Two days later it rose 10. 15%.

• On November 14, 1972 the average closed above 1,000 (1,003. Events 1533 - Conquistadors from Spain under the leadership of Francisco Pizarro arrive in Cajamarca, Inca Year 1972 ( MCMLXXII) was a Leap year starting on Saturday (link will display full calendar of the Gregorian calendar. 16) for the first time, during a relatively brief rally in the midst of a lengthy bear market.

The 1980s and especially the 1990s saw a very rapid increase in the average, though severe corrections did occur along the way.

• The largest one-day percentage drop since 1914 occurred on "Black Monday", October 19, 1987, when the average fell 22. In financial markets Black Monday refers to Monday, October 19, 1987, when Stock markets around the world crashed, shedding a Events 202 BCE - The Battle of Zama results in the defeat of Carthage and Hannibal. Year 1987 ( MCMLXXXVII) was a Common year starting on Thursday (link displays 1987 Gregorian calendar) 61%.
• The largest one-day percentage gain since the 1930s, 10. 15%, occurred two days later on Wednesday, October 21, 1987 bringing the Dow back above 2,000 and in line for a yearly gain. Events 1512 - Martin Luther joins the theological faculty of the University of Wittenberg. Year 1987 ( MCMLXXXVII) was a Common year starting on Thursday (link displays 1987 Gregorian calendar)
• On November 21, 1995 the DJIA closed above 5,000 (5,023. Events 164 BC - Judas Maccabaeus, son of Mattathias of the Hasmonean family restores the Temple in Jerusalem. Year 1995 ( MCMXCV) was a Common year starting on Sunday. Events of 1995 55) for the first time.
• On March 29, 1999, the average closed above the 10,000 mark (10,006. Events 1461 - Wars of the Roses: Battle of Towton - Edward of York defeats Queen Margaret to become King Year 1999 ( MCMXCIX) was a Common year starting on Friday (link will display full 1999 Gregorian calendar) 78) after flirting with it for two weeks. This prompted a celebration on the trading floor, complete with party hats.
• On May 3, 1999, the Dow achieved its first close above 11,000 (11,014. Events 1491 - Kongo monarch Nkuwu Nzinga is baptised by Portuguese missionaries adopting the baptismal name of João Year 1999 ( MCMXCIX) was a Common year starting on Friday (link will display full 1999 Gregorian calendar) 70).

The uncertainty of the 2000s brought a significant bear market, followed by indecision on whether the following bull market represented just a prolonged cyclical rally or the start of a new secular trend. In Investing, Financial markets are commonly believed to have market trends that can be classified as primary trends secondary trends (short-term and secular trends In Investing, Financial markets are commonly believed to have market trends that can be classified as primary trends secondary trends (short-term and secular trends

• On January 14, 2000, the DJIA reached a record high of 11,750. Events 1129 - Formal approval of the Order of the Templar at the Council of Troyes. 2000 ( MM) was a Leap year that started on Saturday of the Common Era, in accordance with the Gregorian calendar. 28 in trading before settling at a record closing price of 11,722. 98; these two records would not be broken until October 3, 2006. Events 42 BC - First Battle of Philippi: Triumvirs Mark Antony and Octavian fight an indecisive battle with Caesar's Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar.
• The largest one-day point gain in the Dow, an advance of 499. 19, or 4. 93%, occurred on March 16, 2000, as the broader market approached its top. Events 597 BC - Babylonians capture Jerusalem, replace Jehoiachin with Zedekiah as king 2000 ( MM) was a Leap year that started on Saturday of the Common Era, in accordance with the Gregorian calendar.
• The largest one-day point drop in DJIA history occurred on September 17, 2001, the first day of trading after the September 11, 2001 attacks, when the Dow fell 684. Events 1176 - The Battle of Myriokephalon is fought 1462 - The Battle of Świecino (or Battle of Żarnowiec Year 2001 ( MMI) was a Common year starting on Monday according to the Gregorian calendar. 81 points, or 7. 1%. By the end of that week, the Dow had fallen 1,369. 70 points, or 14. 3%. A recovery attempt allowed the average to close the year above 10,000.
• By mid-2002, the average had returned to its 1998 level of 8,000.
• On October 9, 2002, the DJIA bottomed out at 7,286. Events 768 - Carloman I and Charlemagne are crowned Kings of The Franks. See also 2002 (disambiguation Year 2002 ( MMII) was a Common year starting on Tuesday of the Gregorian calendar. 27 (intra-day low 7,197. 49), its lowest close since October 1997.

The Dow fell 14. 3% after the September 11, 2001 attacks. Exchanges were closed between September 10th and September 17th.

• By the end of 2003, the Dow returned to the 10,000 level. Year 2003 ( MMIII) was a Common year starting on Wednesday of the Gregorian calendar.
• On January 9, 2006 the average broke the 11,000 barrier for the first time since June 2001. Events 475 - Byzantine Emperor Zeno is forced to flee his capital at Constantinople. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar.
• In October 2006, four years after its bear market low, the DJIA set fresh record theoretical, intra-day, daily close, weekly, and monthly highs for the first time in almost seven years, closing above 12,000 for the first time on the 19th anniversary of Black Monday. In financial markets Black Monday refers to Monday, October 19, 1987, when Stock markets around the world crashed, shedding a
• On February 27, 2007, the Dow Jones Industrial Average fell 3. Events 1560 - The Treaty of Berwick, which would expel the French from Scotland, is signed by England and the Congregation Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. 3% (415. 30 points), its biggest point drop since 2001. This move was part of a correction that eventually reached below the 12,000 level. It foreshadowed increased levels of volatility not seen since March 2003, including routine 1% moves and occasional moves of greater than 2% in a single session, which continued throughout the year. The initial drop was caused by a global sell-off after Chinese stocks experienced a mini-crash.
• On April 25, 2007, the Dow passed 13,000 in trading and closed above the milestone for the first time. Events 1607 - Eighty Years' War: The Dutch fleet destroys the anchored Spanish fleet at Gibraltar. Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. Less than three months later, on July 19, the average set an all-time closing high above the 14,000 level: the fastest 1,000-point advance for the index since 1999. Events 711 - Muslim forces under Tariq ibn Ziyad defeat the Visigoths led by their king Roderic.
• On July 26, 2007, the DJIA experienced a 450 point intraday loss, followed by a partial recovery of 311. Events 657 - Battle of Siffin. 811 - Battle of Pliska; Byzantine Emperor Nicephorus Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. 50 points, to close at 13,473. 57. This came on the heels of turbulence in the U.S. sub-prime mortgage market and the soaring value of the Yuan. The United States of America —commonly referred to as the Subprime lending ( near-prime, non-prime, or second chance lending is a financial term that was popularized by the media during the "credit crunch" ^[5][6] The move initiated another correction falling below the 13,000 mark, about 10% from the highs.
• On September 18, 2007, the Federal Reserve cut its overnight interest rate and discount rate targets by half a percentage point each to 4. Events 96 - Nerva is proclaimed Roman Emperor after Domitian is assassinated Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. 75% and 5. 25%, respectively. In response, the Dow gained 335. 97 points (2. 5%), its largest one-day jump since October 15, 2002 and its biggest percent rise since April 2, 2003. Events 533 - Byzantine General Belisarius makes his formal entry into Carthage, having conquered it from the Events 68 - Galba, Governor of Hispania, names himself legatus senatus populique Romani, breaking the line of
• On March 11, 2008, stocks rallied as investors welcomed news that the Federal Reserve will lend up to $200 billion to banks and lenders as a means of loosening up tight credit markets. Events 1425 BC - Thutmose III, Pharaoh of Egypt, dies (according to the Low Chronology of the 18th Dynasty 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common It was Dow's best day since July 2002. July 2002: January - February - March - April - May - June - July - August - September [1]

Note: For current record highs, please see Closing Milestones of the Dow Jones Industrial Average

Criticism

With the current inclusion of only 30 stocks, some, such as Ric Edelman argue,^[7] the DJIA is not a very accurate representation of the overall market performance even though it is the most cited and most widely recognized of the stock market indices. This article is a summary of the closing milestones of the Dow Jones Industrial Average, the best-known Stock market index in the world Ric Edelman is an American Financial advisor, Author, and Talk radio show host that has "led many American Clients to Wealth" Historically, though, it has performed very much in line with the broader U. S. market.

Additionally, the DJIA is criticized for being a price-weighted average, which gives relatively higher-priced stocks more influence over the average than their lower-priced counterparts. A price-weighted index is a Stock market index where each constituent makes up a fraction of the index that is proportional to its price For example, a $1 increase in a lower-priced stock can be negated by a $1 decrease in a much higher-priced stock, even though the first stock experienced a larger percentage change. As of November 2007 IBM is the highest priced stock in the index and therefore has the greatest influence on it. November 2007 is the eleventh month of that year It began on a Thursday and 30 days later ended on a Friday International Business Machines Corporation abbreviated IBM and nicknamed "Big Blue", is a multinational Computer Technology Many critics of the DJIA recommend the float-adjusted market-value weighted S&P 500 or the Dow Jones Wilshire 5000, the latter of which includes all U. The S&P 500 is a Stock market index containing the stocks of 500 Large-Cap Corporations all of which are from the United States. The Dow Jones Wilshire 5000 Composite Index, more simply the Dow Jones Wilshire 5000, is a Market capitalization -weighted index of the market value of S. securities with readily available prices, as better indicators of the U. S. market.

Another issue with the Dow is that not all 30 components open at the same time in the morning. On the days when not all the components open at the start, the posted opening price of the Dow is determined by the price of those few components that open first and the previous day's closing price of the remaining components that haven't opened yet; on those days, the posted opening price on the Dow will be close to the previous day's closing price (which can be observed by looking at Dow price history) and will not accurately reflect the true opening prices of all its components. Thus, in terms of candlestick charting theory, the Dow's posted opening price cannot be used in determining the condition of the market. A candlestick chart is a style of Bar-chart used primarily to describe price movements of an equity over time

Companies included in the DJIA

Further information: Historical components of the Dow Jones Industrial Average

The individual components of the DJIA are occasionally changed as market conditions warrant. The Dow Jones Industrial Average 's component companies have changed over time from 1896 to present When companies are replaced, the scale factor used to calculate the index is also adjusted so that the value of the average is not directly affected by the change.

On November 1, 1999, Chevron, Goodyear Tire and Rubber Company, Sears Roebuck, and Union Carbide were removed from the DJIA and replaced by Intel, Microsoft, Home Depot, and SBC Communications. Events 996 - Emperor Otto III issues a deed to Gottschalk Bishop of Freising which is the oldest known document using the name Ostarrîchi Year 1999 ( MCMXCIX) was a Common year starting on Friday (link will display full 1999 Gregorian calendar) The Goodyear Tire & Rubber Company was founded in 1898 by Frank Seiberling. Sears Roebuck and Company, commonly known as Sears, is an American mid-range chain of International Department stores founded by Richard Union Carbide Corporation ( Union Carbide) is one of the oldest chemical and polymers companies in the United States, currently employing more than 3800 people Microsoft Corporation is an American multinational Computer technology Corporation, which rose to dominate the Home computer The Home Depot ( is an American Retailer of Home improvement and construction products and services Before proposing a merge request please see Talk and see if the merger you propose has recently been made and Intel and Microsoft became the first two companies traded on the NASDAQ exchange to be listed in the DJIA. The NASDAQ (acronym of National Association of Securities Dealers Automated Quotations) is an American Stock exchange. On April 8, 2004, another change occurred as International Paper, AT&T, and Eastman Kodak were replaced with Pfizer, Verizon, and AIG. Events 217 - Roman Emperor Caracalla is Assassinated (and succeeded by his Praetorian "MMIV" redirects here For the Modest Mouse album see " Baron von Bullshit Rides Again " International Paper ( is an American pulp and paper company, the largest pulp and paper company in the world Before proposing a merge request please see Talk and see if the merger you propose has recently been made and Eastman Kodak Company ( is an American multinational Public company which produces imaging and photographic materials and equipment Pfizer Incorporated ( is a major Pharmaceutical company, which ranks number one in the world in sales "Verizon" redirects here this article is about the corporation see also Verizon Wireless, Verizon Online DSL and Verizon FiOS. On December 1, 2005, AT&T returned to the DJIA as a result of the SBC Communications and AT&T merger. Events 800 - Charlemagne judges the accusations against Pope Leo III in the Vatican Year 2005 ( MMV) was a Common year starting on Saturday (link displays full calendar of the Gregorian calendar. Altria Group and Honeywell were replaced by Chevron and Bank of America on February 19, 2008. Altria Group Inc ( (previously named Philip Morris Companies Inc Honeywell ( is a major American multinational conglomerate company that produces a variety of consumer products engineering services and aerospace systems Banc of America Securities Bank of America () is the largest bank by asset and second largest commercial Bank by deposits and Market capitalization in United Events 197 - Roman Emperor Septimius Severus defeats usurper Clodius Albinus in the Battle of Lugdunum 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common ^[8]

The Dow Jones Industrial Average consists of the following 30 companies:^[9]

Calculation

To calculate the DJIA, the sum of the prices of all 30 stocks is divided by a divisor. The New York Stock Exchange ( NYSE) is a Stock exchange based in New York City. A restaurant is a retail establishment that serves prepared Food to Customers. A bar (also called a Pub or Tavern) is a business that serves drinks especially Alcoholic beverages such as beer liquor and mixed drinks for consumption Merck & Co Inc ( also known as Merck Sharp & Dohme or MSD outside the USA and Canada, is one of the largest Pharmaceutical companies The New York Stock Exchange ( NYSE) is a Stock exchange based in New York City. The following is a list of the 50 largest Pharmaceutical and Biotech companies ranked by healthcare revenue Microsoft Corporation is an American multinational Computer technology Corporation, which rose to dominate the Home computer The NASDAQ (acronym of National Association of Securities Dealers Automated Quotations) is an American Stock exchange. Pfizer Incorporated ( is a major Pharmaceutical company, which ranks number one in the world in sales The New York Stock Exchange ( NYSE) is a Stock exchange based in New York City. The following is a list of the 50 largest Pharmaceutical and Biotech companies ranked by healthcare revenue Procter & Gamble Co ( P&G,) is a Fortune 500, American global corporation based in Cincinnati Ohio, that manufactures a wide The New York Stock Exchange ( NYSE) is a Stock exchange based in New York City. United Technologies Corporation (UTC ( is an American multinational conglomerate based in Hartford, Connecticut and is the 20th The New York Stock Exchange ( NYSE) is a Stock exchange based in New York City. "Verizon" redirects here this article is about the corporation see also Verizon Wireless, Verizon Online DSL and Verizon FiOS. The New York Stock Exchange ( NYSE) is a Stock exchange based in New York City. Wal-Mart Stores Inc (or Walmart as written in its new logo is an American public corporation that runs a chain of large discount department stores The New York Stock Exchange ( NYSE) is a Stock exchange based in New York City. The New York Stock Exchange ( NYSE) is a Stock exchange based in New York City. For the band see Broadcast (band Broadcasting is the distribution of audio and/or Video signals which transmit See also Entertainment (disambiguation and The Entertainer (disambiguation Entertainment is an activity designed to give people The Dow Jones Industrial Average (DJIA is a price-weighted index that is calculated by dividing the sum of the prices of the 30 component stocks ( Dow Jones Industrial Average The divisor is adjusted in case of splits, spinoffs or similar structural changes, to ensure that such events do not in themselves alter the numerical value of the DJIA. The initial divisor was the number of component companies, so that the DJIA was at first a simple arithmetic average; the present divisor, after many adjustments, is less than one (meaning the index is actually larger than the sum of the prices of the components). That is:

where p are the prices of the component stocks and d is the Dow Divisor.

Events like stock splits or changes in the list of the companies composing the index alter the sum of the component prices. In these cases, in order to avoid discontinuity in the index, the Dow divisor is updated so that the quotations right before and after the event coincide:

See also

• Closing milestones of the Dow Jones Industrial Average
• Dow Jones Composite Average
• Dow Jones Transportation Average
• Dow Theory
• New York Stock Exchange
• DJIA divisor

References

External links

• Dow Jones Indexes Website
• MSN Money page for DJIA
• Google Finance page for DJIA
• Yahoo! Finance page for DJIA
• History of Stock Market Indexes
• The Dow Jones Industrial Average Celebrates 110 Years
• Seeking Alpha coverage of the Dow ETF
• Dow Jones Utilities Average - DJUA
• Industry Classification Benchmark for Dow Jones Indexes (United States) and FTSE Indexes (United Kingdom) (pdf)

Performance

• Chart of DJIA performance (1928–present) — Linear scale
• Chart of DJIA performance (1928–present) — Logarithmic scale
• Listing of quotes for all DJIA components
• Interactive chart from 1900 - linear, bar, candlestick + 25 indicators