It is comprised of 30 blue chip stocks whose one binding similarity is their hugeness.

The DJIA is the best-known market indicator in the world, partly because it is old enough that many generations of investors have become accustomed to quoting it, and partly because the U. Only one of the original 12 DJIA stocks is in the index today.

David Letterman used to have a ball poking fun at it when his show was carried on NBC, one of this company's divisions. That's right, Letterman was jiving General Electric.

Large-cap companies representative of U. The Dow includes powerhouses such as Proctor and Gamble, Home Depot, Coca Cola, and Microsoft.

Although it consists entirely of very large companies, it's designed to represent almost any U. Only substantial industrial companies with a history of successful growth and wide interest among investors are considered for inclusion.

The "average" is in the title because the index's performance was originally computed by adding up stock prices and dividing by the number of stocks. The methodology remains the same today, but the divisor has been changed to preserve historical continuity. The DJIA is a price-weighted index calculated daily based on the price of each company without any regard to the relative size of each component. The focus on dow jones industrial components by market cap companies provides significant stability for the DJIA.

Each company is recognizable to significant portions of the investing public.

As the oldest, most frequently referenced index, when people ask how "the market" has done, they are usually asking inwestycje walutowe na rynku miedzybankowym forex the DJIA.

Because it is restricted to U.

^DJI Components | Dow Jones Industrial Average Stock - Yahoo Finance

Because, by definition, it focuses largely on industrial companies, in the information dow jones industrial components by market cap it may not accurately reflect the performance of large swaths of the U. Because it is price-weighted, it does not track the performance of the companies in a way that stock market for dummies australia a rational investor's gains.

To equal the Dow's performance, an investor would have to buy the same number of shares of each company; such a strategy would force the investor to invest more money in companies with higher share prices, not a terribly rational way to invest.

Dow 30 Companies - CNNMoney

The DJIA has several financial products related to it, including index funds and exchange-traded funds such as Dow Diamonds Amex: The companies of the DJIA are not likely to disappear -- they are some of the largest in the U. An investor looking for low risk, capital preservation, and some income from dividends would be the ideal purchaser of products linked to the Dow. Make it inline block later.

Dow Jones Industrial Average (SM) Component Weights - husoxupowoj.web.fc2.com

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