The Dow Jones Industrial Average, also known as Dow Jones or just Dow, is a stock market index that tracks the performance of 30 large-cap publicly traded companies in the United States. The index was created by Charles Dow and Edward Jones in 1896 and has become one of the most widely followed stock market benchmarks in the world.
The Dow companies are chosen based on their market capitalization, financial stability, and overall importance to the US economy. Some of the most famous Dow companies include Apple Inc., Microsoft Corporation, ExxonMobil Corporation, and Johnson & Johnson.
The Dow is calculated by adding up the stock prices of the 30 companies and dividing by a specific divisor that adjusts for stock splits, dividend payments, and other corporate actions. Because the Dow is a price-weighted average, the higher-priced stocks have a greater impact on the index's performance.
The performance of the Dow is closely watched by investors, analysts, and economists around the world as a measure of the health of the US stock market and the broader US economy.
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