Expert Chaslau Koniukh
  • Biography
  • Analytics
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Market terminology
  • Stock Market
  • World exchanges
dow jones averages

What is the Dow Jones averages index

17.06.2020
2 min read

The United States is the largest economy, with fluctuations and changes affecting the whole world. Traders monitor the growth or decline in the market thanks to special financial instruments, among which is the Dow Jones averages index.

History of appearance and structure of Dow Jones averages

Stock indexes show the state of the economy. In the U.S., they include:

  • S&P 500 indexes (which includes 500 large companies);
  • NASDAQ Composite, intended to analyze the dynamics of high-tech market segment;
  • Dow Jones – overall economic development indicator.

The latter is the best known index and characterizes the overall dynamics in the country.
Charles Dow, who also created The Wall Street Journal, developed the Dow Jones Industrial average index in 1884. Originally this financial instrument was for personal use and included shares of 9 railway companies and 2 industrial companies. According to the idea of Charles Dow, Dow Jones Industrial average was to monitor the dynamics of shares to understand whether their value will increase or remain at the same level. As stocks rise, the index rises, and if the Dow Jones begins to decline, then the stock price will soon fall.
The index was officially published in 1896 and was aimed at analyzing industrial companies, as at that time they had the highest capitalization. Dow Jones included 12 companies and used the average arithmetic value of their shares to calculate it. Its first figure was 40.94 p.

dow jones averages

Now Dow Jones averages contain various indexes. Its value is determined by a well-known rating agency. The main activities of this company are operations to assign ratings to different countries. In addition, they issue debt securities for stock markets of 26 countries and conduct comprehensive research for investors.
Dow Jones indexes take into account a number of factors, including share fluctuations, real estate market dynamics and others.
The Dow Jones averages index complex includes:

  • main index, which includes shares of 30 companies;
  • similar to the previous instrument that evaluates dividend yield;
  • index, which includes 20 shares of transport companies;
  • 15 utility companies and their shares;
  • general Dow Jones Composite Average, which includes all the above.

There are also Dow Jones with an attachment for a specific country or region to analyze the economy in them.
Companies that are part of the Dow Jones Average have a total capitalization of $5,695,582.30 million. All of them play an important role not only for the U.S. economy, but also for the world as a whole.

Share
0
Previous Post IMF forecast: what is expecting the world economy next year Next Post Chaslau Koniukh on the analysts' opinion on the key stake size change soon

You Might Also Like

junk bonds
Market terminology
Junk bonds: characteristics of securities with low credit ratings
02.02.2021
underwriter profession
Market terminology
Underwriter: a profession that helps assess business risks
04.11.2020
Factoring and forfeiting
Market terminology
Factoring and forfeiting: business benefits
25.10.2020
oscillators in trading
Market terminology
Oscillators in trading: advantages and disadvantages of instruments
23.01.2021
leverage
Market terminology
What a broker’s leverage means: the essence of the term
16.08.2020
free margin
Market terminology
Free margin and leverage: basic concepts on the Forex exchange
17.07.2020

Recent Posts

  • 1PNC Financial Services Group
    Financial Corporation PNC Financial Services Group
    24.02.2021
  • 2Evraz plc
    S&P Global Ratings analysts downgraded rating for Evraz plc
    23.02.2021
  • 3Anti-Martingale
    Anti-Martingale strategy and its implementation in the Forex market
    22.02.2021
  • 4oil exports to China
    Oil exports to China increasing: reasons for the growth in volumes
    21.02.2021
  • 5Advertising backpacks
    Advertising backpacks from BackAd startup: unique development
    20.02.2021

Popular Posts

  • How foreign investments are distributed in the world 0
  • Strong economies: development and prospects for Iceland 0
  • What to do when the stock exchanges are falling: analyze the fall of the indexes 0
  • Automobile concern Fiat Chrysler Automobiles: plans to merge with Peugeot Societe Anonyme 0

Social

Editor's Picks

Chaslau Koniukh

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Latest Posts

PNC Financial Services Group
Financial Corporation PNC Financial Services Group
24.02.2021
Evraz plc
S&P Global Ratings analysts downgraded rating for Evraz plc
23.02.2021
Anti-Martingale
Anti-Martingale strategy and its implementation in the Forex market
22.02.2021

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh is an international financial expert, a professional investor, an experienced analyst and a practicing trader. He advises European entrepreneurs; holds lectures on investment topics; is the author of scientific articles on work at the stock market.

Recent Posts

  • 1Wendy Deng
    Wendy Deng: How a poor Chinese girl became one of the most powerful women in the world
    25.02.2021
  • 2PNC Financial Services Group
    Financial Corporation PNC Financial Services Group
    24.02.2021
  • 3Evraz plc
    S&P Global Ratings analysts downgraded rating for Evraz plc
    23.02.2021
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Youtube
  • Instagram
  • Biography

Expert Chaslau Koniukh: brief biography and path of formation

Let’s Socialize