ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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500 different stocks of U.S. companies
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30 companies covering the major sectors in the U.S. stock market
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Either A or B
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None of the above
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Detailed explanation-1: -The Dow Jones Industrial Average (DJIA) measures the daily price movements of 30 large American companies on the Nasdaq and the New York Stock Exchange. The components are chosen from all the major sectors of the economy, with the exception of the transportation and utility industries.
Detailed explanation-2: -The Dow 30, also known as the Dow Jones Industrial Average (DJIA), consists of 30 large, publicly-traded U.S. companies. The companies in the Dow are always changing, depending on their prominence within the economy.
Detailed explanation-3: -The DJIA covers 30 large-cap companies, which are subjectively picked by the editors of The Wall Street Journal. Over the years, companies in the index have been changed to ensure the index stays current in its measure of the U.S. economy.
Detailed explanation-4: -The Dow Jones Industrial Average is a basket of stocks representing the 30 biggest publicly owned companies in the U.S. Performance in the DJIA is closely tied to political and social events, rising and falling based on economic conditions and the reactions of investors to them.
Detailed explanation-5: -The DJIA includes only 30 large companies. It is price-weighted, unlike stock indices, which use market capitalization. Furthermore, the DJIA does not use a weighted arithmetic mean.