Dow Jones Average

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Dow Jones Average,

indicators used to measure and report value changes in representative stock groupings on the New York stock exchangestock exchange,
organized market for the trading of stocks and bonds (see bond; stock). Such markets were originally open to all, but at present only members of the owning association may buy and sell directly.
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. There are four different averages—industrial stocks, transportation stocks, utility stocks, and a composite average of all three. The index was started in 1884 by Charles Dow (1851–1902) and Edward Davis Jones (1856–1920) as an average consisting mostly of railroad stocks. In 1896, Dow Jones created the industrial average (with 12 stocks) and separated the railroad stocks into a separate average (renamed the transportation index in 1970); daily publication of the average began in the Wall Street Journal later that year. The industrial average expanded to 20 stocks (1916) and then 30 (1928); the average still lists 30 stocks, but the companies have changed through the years as American industry itself has grown and changed. The utilities average was started in 1929.

Although the industrial average is the most frequently cited, it has been criticized for consisting of only blue-chip stocks and for its inability to adjust accurately—in spite of a sophisticated mathematical formula—for dividends and stock splits; some analysts feel that other indexes, such as the Standard & Poor's 500, are more accurate reflections of market activity. The average is quoted in points, not in dollars; in 1896, the industrial average was at 40.94 points. In 1972 the average passed 1,000, and in 1999 it closed above 10,000. The industrial average is often taken as an indicator of the stock market's growth or shrinkage (and thus the strength or weakness of the U.S. economy). In 1929 the average dropped more than 12%, reflecting the crash of the stock market and the start of the Great DepressionGreat Depression,
in U.S. history, the severe economic crisis generally considered to have been precipitated by the U.S. stock-market crash of 1929. Although it shared the basic characteristics of other such crises (see depression), the Great Depression was unprecedented in its
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; in the "crash" of 1987 the average dropped more than 22%. Other Dow Jones averages include the Dow Jones 20 Bond Average, the Dow Jones Municipal Bond Yield Average, and the Dow Jones Internet Indexes.

References in periodicals archive ?
The Dow Jones Industrial Average is a price-weighted index published by Dow Jones & Company, Inc.
The Dow Jones Industrial Average was created more than a century ago by the editors of The Wall Street Journal as a convenient and accurate measure of stock-market performance.
The index is price-weighted, or calculated in the same manner as the Dow Jones Industrial Average, the world's most widely followed stock index.
At 1:36 pm Eastern Time, the Dow Jones Industrial Average (DJIA - 12,496.
PHOTO New York Stock Exchange brokers and clerks react Monday as the Dow Jones industrial average passes 11,000 for the first time.
At the close, the Dow Jones industrial average, the Standard & Poor's 500-stock index and the Nasdaq composite index had all set records.
Despite bombs bursting in Yugoslavian air, the benchmark Dow Jones industrial average soared Monday to close above 10,000 for the first time.
At last check, the Dow Jones Industrial Average (DJIA - 12,123.
stocks will likely reach and breach the 10,000 barrier in the Dow Jones industrial average in the near future despite warning cries that the market is overvalued, analysts said Thursday.
stocks have moved lower this morning, with the Dow Jones Industrial Average (DJIA - 12,146.
Currently, the major market indices are in a tail spin, with the Dow Jones Industrial Average (DJIA - 12,148.
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