Dow Jones

The United States Market is one of the most powerful on the entire planet; it has a set of companies that handle sales in all corners of the planet.

Now, how does the US measure the stock index of these companies?

It is straightforward to do so using stock indices such as the Dow Jones. In the next section, you will be able to know everything related to the Dow Jones. Among other things, you will know what it is, how it is composed, and the main companies listed on the New York Stock Exchange. So follow us and get the complete information.

Then you ask yourself, what is the Dow Jones, and when did it start to work?

The Dow is the stock index that records and manages the shares of the 30 Limited Companies; listed on the United States market.

Its activities are managed 5 days a week (Monday to Friday) between 9:00 am to 5:30 pm, which is when the auction closes.

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The history of the Dow Jones is quite long since it dates back to 1896, when it began on May 26, measuring the development of only 12 companies. In 1915 expanded the actions subject to evaluation to 15.

The direct operator of the Dow Jones Industrial, which is nothing more than a trading platform. The Dow Jones pursues to measure the performance of the 30 largest US companies and corporations, but only in terms of volume and market capitalization.

What other indices can the Dow Jones compare to?

This American stock index is comparable in several respects with the Dax 30 and the British FT 30.

On the other hand, it is good to point out that because its size is minimal compared to others, such as the Nasdaq or the S&P 500, it does not represent the vitality of the country’s overall economy.

Regarding the composition of the Dow Jones, as we mentioned initially, the 30 largest companies in the United States that are listed on the New York Stock Exchange; are the ones that make up this stock index.

Among the Most Representative, we have:

  • American Express
  • Chevron Corporation
  • Apple
  • Coca-Cola
  • IBM, Intel
  • Microsoft
  • Nike
  • Pfizer
  • Visa, and others.

As one of the directive guidelines of the American index, none of the companies can have a weight greater than 30%. The reviews of each of these are carried out once a year. Those in charge are those of the specialized technical committee.

The best session of this index was reached 12 years ago, when in January 2007 it reached 1.27 percentage points of net profit. On the other hand, its lowest peak was the so-called Black Monday, October 19, 1987. There the Dow Jones suffered an agonizing 22.61% drop in its stock value.

It has had very significant ups and downs; unlike other stock indexes, all the others are affected when a corporation has a decline.