Financial

Dow Jones Industrial Average

The Dow Jones Industrial Average (DJIA), often referred to simply as "the Dow," is a widely followed stock market index that tracks the performance of 30 large, well-established U.S. companies from various industries. Created by Charles Dow in 1896, it is one of the oldest stock indices and is considered a barometer of the overall health of the U.S. economy and stock market.

The DJIA comprises 30 blue-chip companies, which are selected to represent a diverse range of sectors, excluding transportation and utilities (covered by separate Dow Jones indices). The components of the index are chosen by the editors of The Wall Street Journal, with input from the S&P Dow Jones Indices' Index Committee. The DJIA is a price-weighted index, meaning that stocks with higher prices have a larger impact on the index's value. This is different from market-capitalisation-weighted indices like the S&P 500.

The value of the DJIA fluctuates due to various factors, such as changes in the stock prices of its components, economic conditions, corporate earnings, global events, and investor sentiment. Over its history, the DJIA has experienced periods of gains and losses, as well as bull and bear markets.

Charles Dow, the founder of the index, was a financial journalist who co-founded Dow Jones & Company and The Wall Street Journal.

The DJIA initially consisted of only 12 stocks, primarily industrial companies, which is why it is called the "Industrial Average." However, the index now includes companies from various sectors, not just industrials.

The index has undergone numerous changes in its components over the years, reflecting the evolving U.S. economy and the rise and fall of various industries.

The DJIA first reached the 1,000-point milestone in 1972, and it took until 1995 to surpass the 5,000-point mark. It crossed the 30,000-point milestone in November 2020.

Some of the largest and well-known companies in the DJIA, as of September 2021, include Apple, Microsoft, Goldman Sachs, Visa, and McDonald's.

The DJIA has been affected by several significant market events throughout its history, such as the stock market crash of 1929, the 1987 Black Monday crash, the dot-com bubble, and the 2008 financial crisis.

It is important to remember that past performance is not indicative of future results, and investing in the stock market carries risks. Investors should carefully consider their financial goals, risk tolerance, and investment time horizon when making investment decisions.

Table of Contents

Index - A Global Name - Poem

Artwork: Copyright & Details

The Dow Jones Industrial Average, a story of business commercial,

Big stocks listings, that may be controversial.

It all began in 1896,

With the Dow's twelve, a collection of companies’ picks.

The index kept growing, year after year,

With companies joining, with ones that domineer.

In the 1920s, the Dow Jones’ boomed,

And the stock index, soon zoomed.

From oil to banking, and everything in between,

The Dow saw it all, in its bustling scene.

With conglomerates and corporations, all taking part,

The index is a reflection, of big business being smart.

Through wars and crises, the Dow endured,

And sure enough, its businesses matured.

From the post-war boom, to the dot-com bust,

The Dow weathered it all, through its investors' trust.

Today, the index is a global name,

A symbol of big business, it became.

With investors from around the earth,

The Dow Jones Industrial Average, increased its worth.

The index, a story of great renown,

A place where corporations, hung around.

May it continue to boom, and succeed in finance,

And may its legacy live on, and continue to advance.

Financial Romance - Song

Artwork: Copyright & Details

The Dow Jones Industrial Average, a place to play,

A place of wealth, where investors invest every day.

Where companies and corporations, show their might,

And the stocks rise and fall, both day and night.

Oh, the Dow, where money flows,

And investors' portfolios, may come to blows.

With conglomerates and corporations, in a constant dance,

The Dow Jones Industrial Average, behaves like a financial romance.

From Wall Street to Main Street,

The Dow works hard to compete.

With years of growth, and markets that rise,

The index keeps moving, to win first prize.

Oh, the Dow, where money flows,

And the investors' portfolios, may come to blows.

With conglomerates and corporations, in a constant dance,

The Dow Jones Industrial Average, behaves like a financial romance.

With financial skill, comes great wealth,

And the Dow's success, is needed for one’s health.

For as the markets' rise and fall,

The Dow must remain strong, through it all.

Oh, the Dow, where money flows,

And the investors' portfolios, may come to blows.

With conglomerates and corporations, in a constant dance,

The Dow Jones Industrial Average, behaves like a financial romance.

Throughout, the Dow Jones Industrial Average Index has survived,

Its companies come and go, and some have thrived.

And as the markets keep moving, and with investors’ desire,

Financial wealth rises and falls, and consequences transpire.

Artwork

Tulips Artwork: Copyright & Details

External Links

DOW

Information

Image Citations

Dow Jones Industrial Average

Index Is A Global Name - Poem

Financial Romance - Song

Photographs & Art Works

Copyright

My Lap Shop Publishers

Keywords: DOW, DJIA, Dow Jones Industrial Average. Charles Dow, stock indices, stock market, market-capitalisation-weighted indices, price-weighted index, S&P Dow Jones Indices' Index Committee, Wall Street Journal, Dow Jones indices, blue-chip companies, stock market crash of 1929, 1987 Black Monday crash, dot-com bubble, 2008 financial crisis, market events, Industrial Average, bull market, bear markets, corporate earnings, global events, market-capitalisation-weighted indices,

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Created: 24 March 2023

Published: 2 April 2023

Page URL: https://www.mylapshop.com/dow.htm