What is the Dow Jones Industrial Average (DJIA)? Explained in Simple Terms
The Dow Jones Industrial Average is a stock market index created by Charles Dow, Edward Jones, and Charles Bergstresser in 1896. It tracks the performance of 30 large, publicly traded companies in the United States. The Dow has experienced several major events throughout its history, including the stock market crash of 1929, the post-World War II economic boom, the Black Monday crash of 1987, and the ongoing COVID-19 pandemic. Despite these ups and downs, the Dow has remained a widely recognized benchmark for the overall health of the US stock market.
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