There are several ways to measure the performance of the stock market, including using the Dow Jones Industrial Average. But what is the Dow Jones?
To be exact, the Dow Jones, which is also known as the Dow or the DJIA, is a price-weighted index of 30 blue chip stocks on the New York Stock Exchange (NYSE) and the Nasdaq. These companies are well-established with strong fundamentals and are typically considered to be lower risk. The Dow measures the price action of these stocks, which helps show investors the direction of the equities market.
