Dow Jones average Sections & Media Article Introduction & Quick Facts Fast Facts Related Content Media Images Additional Info More Articles On This Topic Contributors Article History Home Politics, Law & Government Law, Crime & Punishment Dow Jones average stock market Print Cite verified Cite While every effort has been made to follow citation style rules, there may be some discrepancies. Please refer to the appropriate style manual or other sources if you have any questions. Select Citation Style MLA APA Chicago Manual of Style Copy Citation Share Share Share to social media Facebook Twitter URL https://www.britannica.com/topic/Dow-Jones-average More Give Feedback External Websites Feedback Corrections? Updates? Omissions? Let us know if you have suggestions to improve this article (requires login). Feedback Type Select a type (Required) Factual Correction Spelling/Grammar Correction Link Correction Additional Information Other Your Feedback Submit Feedback Thank you for your feedback Our editors will review what you’ve submitted and determine whether to revise the article. Join Britannica's Publishing Partner Program and our community of experts to gain a global audience for your work! External Websites Investopedia - What are These Points that the Dow is Always Gaining or Losing? Corporate Finance Institute - Dow Jones Industrial Average By The Editors of Encyclopaedia Britannica | View Edit History Fast Facts Related Content Dow Jones Industrial Average, NASDAQ, and S&P 500 See all media Key People: Charles Henry Dow ... (Show more) Related Topics: Stock ... (Show more) See all facts and data → Dow Jones average , stock price average computed by Dow Jones & Company, Inc. The averages are among the most commonly used indicators of general trends in the prices of stocks and bonds in the United States. Dow Jones & Company, a financial news publisher founded by Charles Henry Dow and Edward D. Jones, began computing a daily industrials average in 1896, using a list of 12 stocks and dividing their total price by 12. The list of stocks has since been broadened, and the divisor has been adjusted to compensate for stock splits, stock substitutions, and significant dividend changes. Thus, the averages are not arithmetical means but averages meant to indicate general market price trends. The most commonly quoted is the Dow Jones Industrial Average (DJIA), which is based on the prices of 30 industrial stocks. Other Dow Jones averages include the Dow Jones Transportation Average (DJTA), based on 20 transportation stocks; the Dow Jones Utility Average (DJUA), based on 15 utility stocks; the Dow Jones Composite Average, comprising the stocks of the DJIA, DJTA, and DJUA; and several bond averages. Other popular gauges of the American securities markets are the S&P 500 and the Russell 2000 indexes. The Editors of Encyclopaedia Britannica This article was most recently revised and updated by Brian Duignan , Senior Editor. Learn More in these related Britannica articles: stock Stock , in finance, the subscribed capital of a corporation or limited-liability company, usually divided into shares and represented by transferable certificates. The certificates may detail the contractual relationship between the company and its stockholders, or shareholders, and set forth the division of the risk, income, and control of the business.… bond Bond , in finance, a loan contract issued by local, state, or national governments and by private corporations specifying an obligation to return borrowed funds. The borrower promises to pay interest on the debt when due (usually semiannually) at a stipulated percentage of the face value and to redeem the face… Charles Henry Dow Charles Henry Dow , American journalist who cofounded Dow Jones & Company, a financial news service, and The Wall Street Journal. His original contributions include the compilation in 1884 of the first average of selected U.S. stock prices that,… History at your fingertips Sign up here to see what happened On This Day , every day in your inbox! Email address By signing up, you agree to our Privacy Notice . Thank you for subscribing! Be on the lookout for your Britannica newsletter to get trusted stories delivered right to your inbox.