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The Dow Jones Industrial Average. What is the Dow Jones Industrial Average?. The Dow Jones Industrial Average tracks the stocks of 30 of the largest and most widely held companies in the United States. It is considered by many financial analysts to be the most important world stock indicator.
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What is the Dow Jones Industrial Average? • The Dow Jones Industrial Average tracks the stocks of 30 of the largest and most widely held companies in the United States. • It is considered by many financial analysts to be the most important world stock indicator. • Some of these companies include: Wal-Mart, McDonald’s, Coca-Cola, Microsoft, Home Depot, Exxon-Mobil, and Walt Disney.
How is the average calculated? • The DJIA is calculated by adding the sum stock values of the 30 companies listed in the index and dividing the sum by an established divisor. • The current divisor is .01255527090 • Because the divisor is less than one it actually serves as a multiplier.
Historic High • The DJIA reached an historic high on October 9, 2007. It closed at 14,164.
The Dow Today • The DJIA was at 12,245.56 as of the closing bell yesterday.
History of the Dow Jones • We are going to watch a video that talks about the origins of the Dow Jones Industrial Average and provides an economic history of the nation from the late 1800’s until the mid-1990’s. • After the video, we will focus upon investing money.