Dow Jones Industrial Average or simply known as Dow Jones is a stock market index. It measures the thirty large companies listed on the stock exchanges of the United States of America. The index’s value is the total of the stock prices of the companies included by IDXDJX: DJI at https://www.webull.com/quote/idxdjx-dji divided by a factor which is currently 0.152. This factor changes when the constituent company goes through a stock split to keep the index safe from the stock split.
Despite being one of the most equity indices, Dow Jones cannot be considered as an adequate representation of the overall US stock market when compared with other indices such as the S&P 500 Index. This is because it includes only the top 30 companies and does not include market capitalization. It does not use the arithmetic mean as well.
How to read IDXDJX: DJI?
Step 1: understand the stocks that …