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Trading and Investment Terms

Dow Jones Industrial Average (Dow)

The Dow Jones Industrial Average is the second-oldest and best-known stock market index.
It measures the daily price movements of 30 large American companies 
Nasdaq 
New York Stock Exchange.

It is widely viewed as a proxy for general market conditions and even the U.S. economy itself.

The Dow Jones Industrial Average popularly referred to as “The Dow,” is regarded as the “pulse of the stock market,” as it is one of the most quoted and followed stock market indexes by 
Investors
Financial professionals
The media.

The index is price-weighted and does not account for changes in market capitalization as other popular indices do.
Since it is price-weighted, it is calculated using a divisor to normalize the index components.
 

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