DJIA – Dow Jones Industrial Average
The DJIA (Dow Jones Industrial Average) is a stock market index which tracks 30 stocks on the NYSE and serves as an indicator as to how the price of stocks are performing on the stock market in general.
The 30 stocks are typically picked based upon such factors as excellent reputation, sustained growth, being of interest to a large number of investors and representing the sectors covered by the average. At the time of writing (September 2005) some of the stocks represented in the DJIA are International Business Machines Corp. (IBM), Walt Disney Co. (DIS), Microsoft Corp. (MSFT) and General Motors Corporation (GM). A full list can be found at Yahoo! Finance.
The DJIA was originally Calculated by simply adding the price of the stocks and then dividing by then number of stocks (30). However, for some time it is calculated by applying an adjuster to the divisor. This current divisor value is 0.12560864.
If you want to find out more about the DJIA then try visiting Dow Jones Indexes.
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