<h1 style="box-sizing: border-box; margin: 0px; font-weight: 500; line-height: 1.5; font-size: 2.4em; font-family: Poppins, sans-serif; color: var(--iq-title-text); letter-spacing: 1px; background-color: #ffffff;">The Dow Jones Industrial Average</h1>
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<p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 1rem; color: #585858; font-family: Poppins, sans-serif; letter-spacing: 1px; background-color: #ffffff;">Often referred to as the Dow Jones Industrial Average, this stock market index tracks the 30 largest publicly owned blue-chip companies in the United States. The price-weighted index is a popular benchmark for investors. It is managed by S&amp;P Dow Jones Indices LLC, a company that is a majority owned by S&amp;P Global. This company has the responsibility of maintaining the integrity of the index. However, S&amp;P does not guarantee the accuracy of the Dow Jones Industrial Average.</p>
<p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 1rem; color: #585858; font-family: Poppins, sans-serif; letter-spacing: 1px; background-color: #ffffff;">The index is calculated by multiplying the number of shares outstanding by the price of the stock. The index also has a component that measures the strength of the U.S. stock market. The index was first introduced in 1896 by Charles Dow and his business partner Edward Jones. The original Dow Jones Industrial Average consisted of 12 stocks. These companies operated in various industries, including oil, railroads, cotton, sugar, and tobacco.</p>
<p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 1rem; color: #585858; font-family: Poppins, sans-serif; letter-spacing: 1px; background-color: #ffffff;">The DJIA has undergone numerous changes over the years. In 1916, the index expanded to include 20 component stocks. These new stocks included Coca-Cola and Procter &amp; Gamble. The index also changed its calculation method. Previously, it was calculated as a simple arithmetic mean. This method has been updated since then, and now the DJIA is divided by the Dow Divisor. This factor is adjusted for structural change events.</p>
<p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 1rem; color: #585858; font-family: Poppins, sans-serif; letter-spacing: 1px; background-color: #ffffff;">The index started as a measure of overall economic growth in the early twentieth century. The rise and fall of peaks and troughs indicated whether the market was in a bull or bear market. At the time, investing in stocks was not as popular as it is today. So, the average American was not able to tell whether the market was thriving or not. To make it easier for the average consumer to know whether the market was moving in a positive or negative direction, the index was compared to sticks in the sand.</p>
<p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 1rem; color: #585858; font-family: Poppins, sans-serif; letter-spacing: 1px; background-color: #ffffff;">The Dow Jones Industrial Average is one of the oldest stock indexes in the world. The company, Dow Jones &amp; Company, was established in the 19th century by Charles Dow. In addition to the Dow index, the company has also created other market averages. These include the Nasdaq composite, which measures the strength of the U.S. equities market, and the S&amp;P 500, which contains the largest 500 publicly traded U.S. companies.</p>
<p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 1rem; color: #585858; font-family: Poppins, sans-serif; letter-spacing: 1px; background-color: #ffffff;">The DJIA has undergone several changes over the years, but the name remains the same. Originally, the index was calculated as a simple arithmetic means, and it contained only 12 stocks. In the early twentieth century, the index was closely linked to the overall economic growth rate of the country. The index was later enlarged to include 30 components.</p>
<p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 1rem; color: #585858; font-family: Poppins, sans-serif; letter-spacing: 1px; background-color: #ffffff;">The index is not just about the value of the stock, but also about the performance of the company. To qualify for inclusion in the index, a company must meet a few criteria. For example, it must be headquartered in the U.S., have at least a $1 billion market cap, and be listed on the New York Stock Exchange. A company may be removed from the index if it is in financial distress, or if it becomes irrelevant to the overall market.</p>