What Is The New York Stock Exchange Dow Jones Index?
The Dow Jones is the main US index. In fact, it is actually the Dow Jones Industrial Index. It takes the share prices and measures the movements of 30 ‘typical’ industrial companies. The DJIA is the most widely followed index on the New York Stock Exchange, and probably in the USA. However, if you want a more realistic view of the US market, the Standard and Poor’s index series is likely to be a more comprehensive guide for most investors. The Dow Jones Index is calculated by adding the New York closing prices and adjusting them by a ‘current average divisor’. This is an adjustable figure which is designed to preserve the continuity of the index over time. This is done to take account of occassional changes to the companies that comprise the index. As you may be aware, Dow Jones is actually a financial information publishing company that in effect, sponsors the index. The company was established in 1882 and was Founded by Edward Davis Jones, Charles Henry Dow and Charles Milford Bergst
