Learn / Glossary / Dow Jones Industrial Average

Glossary

What is Dow Jones Industrial Average?

The Dow follows 30 large, well known American companies.

The simple explanation

It is one of the oldest stock market indexes. It only includes 30 companies, and it is weighted by share price, so it is a narrower view than the S&P 500.

An example

Companies such as Walmart and Visa have been part of the Dow.

Why it matters

It is often quoted in the news as a shorthand for the market.

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Related terms

Educational information, not financial advice.