Dow Jones Industrial Average | Investor's Almanac

The Dow Jones Industrial Average (DJIA), often simply called 'the Dow,' is one of the oldest and most closely watched stock market indices in the world. Created by Charles Dow in 1896, it initially tracked 12 industrial companies, a number that has since expanded to 30. Its price-weighted methodology means that companies with higher stock prices have a greater influence on the index's movement, a characteristic that draws both praise for its simplicity and criticism for its potential to distort representation. Despite its limitations, the Dow remains a powerful symbol of market sentiment and a key indicator for investors and the public alike, often serving as a shorthand for the health of the U.S. economy.