#DowJones November 1
We may earn money or products from the companies mentioned in this post.
Throughout November 2024, several of us are taking part in the 30-Day Dow Jones Coach4aday Challenge. Each day, we explore the history or learn about a company within the DOW JONES—a key economic and stock market indicator.
In 1886 two men named Charles Dow and Edward Jones created an equity index called the Dow Jones Industrial Average (DJIA). That index tracks 30 large publicly owned companies that all trade on the New York Stock Exchange. When the (DJIA) was first established, it included 12 stocks, none of which remain in the index today. General Electric was one of the original dozen stocks, but it was removed in 2018.
The list of the 30 companies that make up the Dow today can be found at this link.
Dow Jones 30-Day Challenge Guidelines
Like previous challenges there are no hard and fast rules to participate. There are a few suggested guidelines
- Each day in November 2024 write about the history or a company that makes up the Dow Jones.
- Share at least one fact about that company.
- If so inclined use the hash tag #Coach4adayChallenge on social media platforms
November 1st-Calculating the Dow Jones
The Dow Jones Industrial Average (DJIA) is calculated as a price-weighted index, which means that stocks with higher prices have a greater influence on the index’s movement than lower-priced stocks. Here’s how it’s calculated:
- Sum of Prices: Add up the current prices of all 30 stocks in the DJIA.
- Dow Divisor: Divide the sum by a unique number called the Dow Divisor. This divisor is regularly adjusted to account for stock splits, dividends, or structural changes to keep the index consistent and comparable over time.
The Dow Divisor helps ensure the index reflects true market changes rather than distortions due to technical adjustments.
As of October 31, 2024, the DJIA was at 41,763. When it was created on May 26, 1886, it started out at 40.94. The Dow has doubled almost 10 times since its inception.
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