What Exactly are the Points in the Dow Jones?
The Dow Jones Industrial Average, often simply known as “the Dow,” is a number that represents the average price of 30 of the largest and most widely traded stocks in the United States. It includes stocks from major corporations such as Wal-Mart, American Express, Home Depot, General Motors, IBM, Microsoft, and McDonalds to use as an indication of how the stock market is performing as a whole. The Dow Jones Industrial Average is one of several stock market indices created by former Wall Street Journal editor Charles Dow. The “Industrial” portion of the name reflects the fact that the stocks originally selected to be part of the index were heavily representative of the manufacturing industry. To calculate the Dow Jones Industrial Average, the total price of the 30 selected stocks is divided by a number that is chosen to compensate for splits, spin-offs, or similar structural changes within one particular organization. Without this divisor, the number reflected by the Dow Jones Industria
The Dow Jones Industrial Average, often simply known as “the Dow,†is a number that represents the average price of 30 of the largest and most widely traded stocks in the United States. It includes stocks from major corporations such as Wal-Mart, American Express, Home Depot, General Motors, IBM, Microsoft, and McDonalds to use as an indication of how the stock market is performing as a whole. The Dow Jones Industrial Average is one of several stock market indices created by former Wall Street Journal editor Charles Dow. The “Industrial†portion of the name reflects the fact that the stocks originally selected to be part of the index were heavily representative of the manufacturing industry. To calculate the Dow Jones Industrial Average, the total price of the 30 selected stocks is divided by a number that is chosen to compensate for splits, spin-offs, or similar structural changes within one particular organization. Without this divisor, the number reflected by the Dow Jones Ind
