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The Dow Jones Industrial Average Explained
By qwcdirect | May 3, 2010
A person may be wondering what in the world is ‘Dow Jones’. is This is a market like any other on Wall Street the business center of America, created by a journalist named Dow Jones hence the name. Actually, most people would know this as the blue chips or the Dow 30 and are the most common. Since time immemorial, understanding how a company performed on the stock market was quite hard, it still is for some people. Dow Jones set out to simplify this and enable people to easily understand what is meant by a certain term and number in the industry. He did this by combining results from 11 stocks.
Today, it holds an average 30 companies and not just any company but the biggest names in the business world. Among them are the Coca Cola, Disney and even General Motors. Times have not been as smooth for Dow for instance at the time of the great depression the economy was adversely affected because most companies went down. Bearing in mind the big names under Dow Jones, most people find it safe to buy shares from them since they are somewhat assured of making good money.
Topics: Financial evaluation, Stock Markets | No Comments »