Dow Jones Average

Also found in: Dictionary, Financial, Wikipedia.

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.
..... Click the link for more information.
. 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
..... Click the link for more information.
; 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.

Mentioned in ?
References in periodicals archive ?
Table 3 is prepared in a similar way to Table 2 except that the 36-56 interval for the Dow Jones Industrial Average is used as the correlation partner for each of the other intervals (instead of the 36-56 interval in the respective Dow Jones Average.)
The Dow Jones average plunged 465 points at the opening of trading, but rebounded and ended the day down only 128.11 points.
HFN Stock Index 1.15% Dow Jones Average -1.18% Note: Table made from line graph.
GM, which is among the 30 stocks that make up the Dow Jones average, immediately led the market after the agreement was announced.
NEW YORK - The Dow Jones average briefly reached its all-time intraday high early Tuesday in New York on lower crude oil prices.
* Create a timeline of mergers and acquisitions in industry A and plot it against the Dow Jones average.
By comparison, during August the Dow Jones Average slid i 2.4%.
Paper company stock prices lagged the Dow Jones average by wide margins, the industry failed to earn its cost of capital, and the industry practically vanished from Wall Street radar screens, replaced by exciting, dynamic growth stocks in industries such as energy trading, telecommunications, and wireless.
The record 684-point drop in the Dow Jones average Sept.
Traders continued to watch Wall Street with trepidation after the Dow Jones average lost more than seven per cent of its value this week.
The Dow Jones Average of 30 Industrial Stocks is often considered an investment in the old economy, with its stocks like Coca-Cola, General Motors, Procter & Gamble.