Dow Jones Average

(redirected from Dow Jones Industrial Average)
Also found in: Dictionary, Financial, Acronyms, 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.

The Columbia Electronic Encyclopedia™ Copyright © 2013, Columbia University Press. Licensed from Columbia University Press. All rights reserved.
Mentioned in ?
References in periodicals archive ?
The firm is home to financial market indicators, such as the S&P 500 and the Dow Jones Industrial Average.
The Dow Jones industrial average closed down 419 points, or 3.7 percent, to 10,991.
TOKYO - The Osaka Securities Exchange plans to list futures contracts on the 30-issue Dow Jones Industrial Average on the New York Stock Exchange in cooperation with the Chicago Mercantile Exchange, which has the license on the futures, sources close to the matter said Monday.
The Dow Jones industrial average fell 228 points, or 1.9%, to close at 11,984.
Bollen said "the calmness index appears to be a good predictor of whether the Dow Jones Industrial Average goes up or down between two and six days later."
The falls came after the Dow Jones industrial average fell 1.19 per cent on Thursday, hitting its lowest point close since October 9, 2002.
AMERICAN INTERNATIONAL GROUP, New York, will be replaced by Kraft Foods in the Dow Jones Industrial Average on Sept.
The frenetic half-day session followed a week-long vacation for Japanese financial markets during which the Dow Jones industrial average tumbled more than two per cent and the price of crude oil topped EUR100 for the first time, threatening the oil-dependent Japanese economy.
This chart shows the recent movement of the HFN Stock Index compared with the Dow Jones Industrial Average. The HFN Stock Index is composed of 27 retailers and 18 manufacturers tracked by HFN.
Yes, you can build, manage, preserve and pass on wealth, even if your parents never discussed the Dow Jones Industrial Average at the dinner table when you were a child.

Full browser ?