Finance: What is the Dow Jones Industrial Average?

What is the Dow Jones Industrial Average? The Dow Jones Industrial Average is usually just called the Dow. It’s an average of 30 of the most well-known and influential stocks. Using these stocks, it determines how the market is performing overall.

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Transcript

00:27

Street traders really rely on that much as a market place holder anymore. why?

00:31

well because the Dow comprises only 30 stocks. it isn't really a broad market [Dow Jones in the trash]

00:37

representation, and you know the way the S&P 500 is the 500 is bigger than 30. Big

00:43

Brother has way more stocks and is thus way more liquid than the relatively

00:48

blippi set of 30 stocks that the Dow offers. over time the Dow has changed as

00:53

companies were bought and/or died and or just withered and became no longer

00:57

relevant. i.e. newspaper industry. which means that this thing has gone through

01:02

more faces than Kanye West .yeah. [Kanye West faces pictured]