Glossary

The Dow Jones Industrial Average (DJIA), often referred to as "the Dow," is a widely followed stock market index that tracks the performance of 30 major US companies.

Created by Charles Dow in 1896, the index serves as a barometer for the overall health of the US stock market and economy. The DJIA is price-weighted, which means that stocks with higher share prices have a more significant impact on the index's value. 📊🇺🇸

For example, the DJIA includes well-known companies like Apple, Microsoft, and McDonald's. As the share prices of these companies fluctuate, the value of the Dow Jones Index changes accordingly.

Fun fact: When the Dow was first introduced, it contained only 12 companies, mostly from the industrial sector. Today, the index is more diverse, representing various sectors such as technology, healthcare, and finance. The DJIA has also become synonymous with "the market" in the financial news, although there are other indexes like the S&P 500 and Nasdaq Composite that offer a broader view of the market. 🌐🎢