DJIA (Dow Jones Industrial Average) Latest Price

Dow Jones Industrial Average (DJIA) Overview

One of the followed indices in the world, The Dow Jones Industrial Average (DJIA) tracks the thirty largest, publicly-owned companies traded on the New York Stock Exchange (NYSE and the NASDAQ).

It includes some of the biggest market-cap companies such as Visa, Verizon, and Nike. When you hear experts say “the market is up today,” they are generally referring to the Dow.

How is the DJIA Calculated?

Higher share price stocks are given a higher weight in the index. Therefore, a more significant percentage move in the higher-priced components has more impact on the final calculated value.

How the DJIA differs from the S&P indices is that it is not a weighted arithmetic average, nor does it represent its component companies market-cap. Instead, it is the sum of the price of one share of stock for all the components, divided by the divisor.

Therefore, a one-point move in any of the component stocks will move the index by an equal number of points.

DJIA = SUM (Component stock prices) / Divisor

The official website can be found here.

Learn more about Dow Jones price and other companies in our FX Academy.