Description
The Dow Jones Industrial Average (DJIA) is a price-weighted stock index compiled by Dow Jones & Company. It is the second-oldest stock index in the United States (after the Dow Jones Transportation Average) and currently consists of 30 major blue-chip companies listed on the New York Stock Exchange (NYSE) and NASDAQ.
Since the DJIA is price-weighted, the impact of each component stock on the index is determined by its share price rather than its market capitalization. When a component stock undergoes a stock split, the DJIA divisor is adjusted to ensure the index remains unaffected by the split.