Dow Jones Industrial Average

When most people hear about Dow Jones, they immediately think of the stock market. It’s not the stock market, rather a group of stocks. More specifically, it’s the average price of the 30 most-traded stocks on the New York Stock Exchange and Nasdaq. What’s the point of that? It helps investors determine the general trend of stock prices.

Example: As of the end of 2020, companies such as Apple, Chevron, IBM, and Walmart were among the 30 businesses on the Dow Jones. Critics of the Dow Jones Industrial Average argue that taking a look at the prices of these kinds of stocks doesn’t accurately depict the state of the broader US economy. On November 24th, 2020, the Dow broke the 30,000 mark for the first time despite unemployment rising above 6%.

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