The Dow Jones Industrial Average is a stock market index that gauges the performance of the top 30 performing companies in the American market. Founded in 1896, the Dow Jones Industrial Average (also known as the Dow or DJIA) is one of the longest-running and most-watched indices in the world.
Today, about two-thirds of the 30 companies are actually industrial, with the other components come from other industries like financial services, entertainment and information. Many investment firms offer the Dow as an exchange-trade fund for investment. However, the Dow is also commonly used as a convenient benchmark for economic conditions in the United States, and beyond, with the impact of global economic events that affect American companies. The Dow is price-weighted.
Russell Shor (MSTA, CFTe, MFTA) is a Senior Market Specialist at FXCM. He joined the firm in October 2017 and has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the International Federation…