The Dow Jones Industrial Average (DJIA) index was created on May 26, 1896 by Wall Street Journal editor and and co-founder of Dow Jones and Company Charles Dow. Dow Jones Transportation Average (DJTA), which was also created by Dow. DJIA is the second oldest US market index after the Dow Jones Transportation Average (DJTA),The Dow Jones Industrial Average (DJIA) is also known as the Dow or Dow Jone it is the 2nd name you can say or it is famous by this name in US market and all over the world.
The price of dow jones is based on average of 30 large publicly and with big market cap companies listed on American stock exchange. Dow jones is one of the largest financial news and business in all over the world. While the other hand Dow Jones Industrial Average tracks owned company by publics , Dow Jones and Company is not a public company itself.
calculation of Dow jones index ?
The Dow Jones Industrial Average (DJIA) was created to measure the movements of companies in the starting time deals with the heavy industry, and it is similar to construction and business comapanies deals with heavy products with big market cap. But this time it deals with only index’s 30 companies.
If we talk about history of Dow Jones Industrial Average (DJIA) so keep this date in your mind May 26, 1896. in the past this index was deals with only 12 stocks and calculation of that price was very simple . simple it is based on average formula add 12 stocks price and divide it by 12 and its done and dow jones index price ready so it was very simple that time .
The Dow Jones Industrial Average (DJIA) based on price weighted . Means if a stock price has high price it impacts more compare to lower one. The daily price of Dow jones is not based on 30 stocks of average price it is based on dow divisor that based on stock splits, spinoffs, and other structural changes.
Dow Jones open time?
- when the markets are open and prices are moving then only The value of the Dow Jones Industrial Average (DJIA) will move further .
- U.S. stock exchanges open from 9:30 a.m. to 4 p.m. Eastern time, Monday to Friday.