Dow Jones and Company is said to be one of the largest business and financial new companies in this world. This was formed in the 19th century by Edwar Jones, Charles Dow, and Edward Bergstresser. Apart from industrial average, this company also has created different other market averages.
Who Is Dow Jones?
It was not formed by a single person as mentioned above. Found in 1882, it was formed by 3 people and in the year 1889, they found their way to The Wall Street Journal which is the most influential financial publication in this world. Dow Jones is still known for the ability to explain all the complicated news to public. The company made a benchmark to indicate whether the stock market was going high or low.
Charles Dow was also a person who believed that stock market movements can be predicted based on the price movements of different types of stocks. According to Dow Theory – if there is an upward trend in the stock market then that can be easily confirmed by a similar move of transportation stock upwards. He created different market averages more accurately.
At present, this company is still the major source of financial news. And they no longer directly control the Dow Jones Averages, that they created initially. There are many who can confuse Dow Jones with the Dow Jones Industrial Average or DGIA. The latter is the one of the most talked-about stock indexes in this world as they contain companies like Boeing, Apple, Microsoft, Coca Cola, and more.
The DJIA was initially launched with just 12 companies that were based mostly in the industrial sectors. But then it grew up till 30 firms as they operated in cotton, railroads, gas, tobacco, sugar, and oil. The performance of industrial companies is often seen as synonymous with that of the overall economy by making DJIA the key measure to board economic health.
The DJIA hardly changes, but there can be occasional additions, and deletions. The changes come in batches, and they keep the total membership to 30 companies. In the world of finance, the New York stock market is mostly dependant on DJIA – as they are the most popularly used index.
The Industrial Average groups together the price of the 30 most traded stocks on the New York Stock Exchange, and the Nasdaq. This is an index that can help the investors to determine the overall movement of the stock prices.
One can easily by the shares of Dow Jones through the exchange of traded funds. But one cannot directly invest in the DJIA because this is just an index. The trading time in India is from 9.30 AM till 4 PM. One can enjoy all the competitive fees, and a dedicated customer support while they are trading securely. One can get all the details in the 5paisa website.
One should remember that the derived prices are not provided by the exchanges. They are mostly derived from the market makers. Prices here can only be indicative, and not appropriate.