Definitions

Dow Jones Industrial Average (DJIA)

Posted By: TradersLog

The Dow Jones Industrial Average is an index of 30 “blue chip” stocks of U.S. “industrial” companies. The Index includes substantial industrial companies with a history of successful growth and wide investor interest. The Index includes a wide range of companies, from financial services companies, to computer companies, to retail companies, but does not include any transportation or utility companies, which are included in separate indices. The stocks included in the DJIA are not changed often. Unlike many other indices, the DJIA is not a “weighted” index (that is, the Index does not take market capitalization into account).

See also: Market Indices

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