What is DOW Jones and why is the New York Stock Market based on their points?
The Dow Jones is a company that publishes financial information, like the NY Times or Washington Post publishes political information. The Dow Jones Industrial Index is a composite, or average, of a specific number of most commonly traded companies on the industrial market. There are also others, like the NASDAQ or the S&P, which are a composite of the more common companies traded on their market. As with any average, it reflects trends but doesnt tell the whole story. It’s a snapshot in time. Let’s say the average rainfall in your area has been 24 inches each year. This year (9 months in) it’s only been 18 inches. The trend is that rainfall is lower this year, but certainly doesn’t mean a drought. And the year is not yet finished, either. Still, it’s a caution to look at other factors, too, before making a snap decision. (Say, like starting a boat rental business when lake levels are down?) For people who don’t understand the market, the drop in the Dow means panic. But those same peo
