We every time hear “Dow market is up” or “Dow market is down” from people from everywhere. “DOW market” could be unknown word for most of them especially who are novice about stock market relevant talks. Let’s understand what DOW stock market is all about. In another terms it is known as “Dow Jones Industrial Average” or “Dow 30” or purely as “Dow”.
Dow Stock market is scaled average of 30 of United States of America’s topmost stocks. It is the second eldest American stock index. The stock market is often listed with S&P 500 index in financial summaries by various companies.
The main agenda of Dow is to provide an insight about how largely American stock market is performing. Although; averagely with 30 listed companies, the information provided might not be to that perfect. Even though, it has remained popular stock index over many years.
Dow stock market came into limelight in the year 1896 with only 12 companies. Dow Jones and Company, the company which has been a primary hand behind Dow stock market also publishes The Wall Street Journal, Market Watch, Barron’s and many stock market relevant journals.
Selected are the present components of Dow stock market and those are Verizon, McDonald’s, Wal-Mart, Sub-way, American Express etc. From the oldest of the 12 companies of Dow, “General Electric” is been still a part of the index and the remaining twenty nine changes as per the market fluctuations. When changes in the market occur, the scaling factor is used to evaluate the index.
It is also adjusted so, it does not directly affect the average. It has been critiqued by many stock market analysts about not including adequate companies that represents overall market enactment. Despite, such kinds of issues, this stock market is been consistently performing over the years which is the reason behind its popularity.
Dow stock market is not at all a bad index, if the investor is trying the general activities of the stock market; it is indeed a good idea to go through Dow index. Today, a lot of investment ventures, invest in Dow stock market and that includes mutual funds. Although; it is recommended to study the market trends carefully and pick on own.