What is a Dow 30 index?

The Dow 30 is a widely-watched stock market index comprising of 30 large U.S. publicly traded companies. It is also called the "Dow" or the "Dow Jones Industrial Average." Constituents are chosen by a committee and the index is price-weighted.

What does the Dow 30 Committee do?

The committee also maintains adequate stock sector representation within the index when deciding which companies fit the bill for the Dow. The Dow 30 was launched by Dow Jones & Company founder and Wall Street Journal editor Charles Dow in 1896. Originally, it had just 12 stocks, most of which were in the industrial sector.

Who created the Dow 30?

The Dow 30 was created by journalist Charles Dow, the man behind the Wall Street Journal, and his business partner Edward Jones in 1896. It was launched as a spin-off of the Dow Jones Transportation Average and is the second oldest stock market index in the U.S.

How do you get into the Dow 30?

To get into the Dow 30 and stay there, companies must be a prominent backbone of the U.S. economy. The Dow 30 is commonly referred to as the Dow Jones Industrial Average, which is a bit of a misleading name. In its early years, the index was made up of many of the heavy industry stocks that helped to build America.