Under what circumstances does the Dow Jones Industrial Average change?
The composition of the Dow Jones Industrial Average is adjusted as needed to ensure that it continues to accurately reflect the U.S. market. Most frequently, changes are made in response to corporate actions such as mergers or acquisitions that affect component stocks. What is The Dow 5? The Dow 5 is a subset of The Dow 10. It contains the five stocks in The Dow 10 that have the lowest prices at the end of December. Why have two indexes for the same strategy? Which is better? Dow Jones Indexes is always doing analysis to measure markets as completely as possible. Neither index is ‘better’ than the other, they just reflect different methodologies. We have customers that prefer the original Dow 10 methodology and others advocating a different methodology. © Dow Jones & Company, Inc. 2007. All rights reserved. “Dow Jones”, “Dow Jones Indexes”, “Dow Jones Industrial Average”, “Dow Jones High Yield Select 10 Index”, “The Dow 10” and “The Dow 5” are service marks of Dow Jones & Company, Inc.
