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When Was the Dow Jones Industrial Average Created?

By

澳洲幸运5官方开奖结果体彩网:The Investopedia Team

Updated November 27, 2024

Reviewed by

Gordon Scott

Fact checked by

Hans Daniel Jasperson

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The Dow Jones Industrial Average (DJIA) was first published on May 26, 1896 by two financial reporters, Charles Dow and Edward Jones, and Charles Bergstresser, Dow's cousin by marriage.

The index followed the 12 largest companies in each sector of the U.S. stock market at that time. The first published value of the Dow Jones was 40.94. It was calculated by taking the average market price for the 12 companies.

Key Takeaways

The Dow Jones Industrial Average (DJIA) was first published in 1896.
Investors had little access to truthful and unbiased information about company financials before its inception.
Twelve original companies represented every segment of the market at the time.
The company later published The Wall Street Journal.

How the DJIA Began

The index was a way for Dow and Jones to report the overall health of the stock market to investors. They had been working together at their company, Dow, Jones & Co., since 1882, publishing a daily financial newsletter, the Customer's Afternoon Letter. It gave readers a recap of the day's stock prices and news. The company later published The Wall Street Journal.

Investors had little access to truthful and unbiased information about company financia♏ls at the time. Companies often withheld or skewed certain information, leaving investors skeptical and timid.

Important

The Dow Jones Industrial Average was necessary to build rapport for th🌞e stock market with investors.

The 12 Original Companies

The 12 original companies represented every segment of the market at the ti♔me except railroads and transportation. They were:

American Cotton Oil
American Sugar
American Tobacco
Chicago Gas
Distilling & Cattle Feeding
General Electric
Laclede Gas
National Lead
North American
Tennessee Coal & Iron
U.S. Leather
United States Rubber

What Is an Index?

An index measures the performance of a group of exchange securities. It tracks certain companies. The S&P 500 and NASDAQ 100 are examples.

What Was the First Stock Market?

Stock markets have effectively been around since before the 1500s but they've always been subject to many structures and purposes over the centuries. The 澳洲幸运5官方开奖结果体彩网:London Stock Exchange was formed in 1801 and the New York Stock Exchange came into being 16 years later. Almost all countries have some version of a stock market in the 21st century.

What Are the Segments of the Market?

Segments are technically referred to as sectors. Eleven are recognized as of 2024:

Communication services
Consumer discretionary
Consumer staples
Energy
Financials
Health care
Industrials
Information technology
Materials
Real estate
Utilities

The Bottom Line

The Dow Jones Industrial Average (DJIA) was first published in 1896. It was the brainchild of two financial reporters, Charles Dow and Edward Jones, who sought to shed light on dishonest information that was commonly included in company financials to mislead investors. Dow and Jones were eventually joined in their efforts by Dow’s cousin, Charles Bergstresser. Dow Jones is a household name in the 21^st century, at least in the househ⛎olds of investors.

Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

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