What is the Dow Jones?

The Dow Jones stock index is an indicator of the movement of the shares of the most important companies traded on the Stock Exchange of New York. Is the average oldest and most representative of that bag. It consists of three averages of the Dow Jones Industrial Average is the most used, indicating the market value of 30 companies recognized worldwide.

The Dow Jones was created by the Dow Jones Company, which was founded by financial journalists and editors Charles Henry Dow and Edward D. Jones in 1882. This also had the collaboration of Charles Bergstresser. The project was to create a “barometer” that could measure economic activity. After many attempts, which were published in the “Wall Street Journal” (Charles Dow was editor of it). Finally, in 1896, the Dow Jones was released by the same means. The creation of three Dow Jones Averages: Transport (DJTA), utilities (DJUA) and Industrial (DJIA). However, the latter is the most used and most investors refer bag. The DJIA, started with 12 shares, then rose to 20 and currently has 30 securities firms such as Coca Cola, McDonalds, General Motors and Microsoft, among others. The DJIA is made, not only for industrial components, but also by other members of financial services, technology, entertainment and others.

Since the Dow Jones began to be used, all shares of companies included in it have been called “blue chips”. The blue chips and blue chips are the most valuable pieces in the game of poker, so it is well to note the high level of the companies in the Dow Jones.

The Dow is a dynamic index, so companies that includes this index may change. This is taken for any change in the performance of a company or when you make a purchase. This is reviewed by the editors of the Wall Street Journal. Screening is considered very carefully and all the components to be changed. There are no regulations to add a title, but takes into account factors such as reputation, growth, investor interest and representation of the sector they belong. In the Dow Jones, the importance of a component is based on the price of the shares and not the number of them in circulation.

Due to the age and reputation of Dow Jones, every time it goes up or down, is a source of news.This is because through him we measure the state of the stock of the world and especially the United States, which is the largest in the world. When the index rises, stands for prosperity in the U.S. stock market, but when it goes down, it means global economic concern. Thus, the Dow Jones, with over 100 years of history has become, despite the displeasure of many, an icon of history and the world economy.


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