How does the Dow Jones industrial average work?

Answer by  Cecilia (2828)

The Dow Jones average consists of 30 companies considered representative of Business in the US. A weighted average of their stock value at the end of the trading day is the Average you hear on the news. The companies included change on occasion if one is considered no longer representative.

Answer by  Vladlen (358)

Dow Jones Industrial Average consist of 30 biggest US companies. It is price-weighted average index, what means that there is a wight assigned to each company in the index. In other words, the bigger the company the more influence it has on the index.