What Does Dow 30 Mean?
The Dow 30, commonly known as the Dow or Dow Jones Industrial Average, was created by Charles Dow, editor of the Wall Street Journal, and is named after Dow and his business partner, Edward Jones.
- The Dow 30, also known as the Dow Jones Industrial Average (DJIA), consists of 30 large publicly traded companies.
- The Dow is constantly changing based on the importance of its economy.
- The Dow Jones is considered a measure of the overall health of the market due to the average share price of all the companies in the index.
- People can invest in Dow through the SPDR Dow Jones Industrial Average ETF (DIA).
- Although both stock indices pursue the same goals, the DJIA and S&P 500 differ from each other in terms of size and method of calculation.
- Critics of the Dow believe that the Dow misrepresented the US market because it had only 30 large companies and was not measured by market capitalization.