Fake News

[Bernardo de La Paz]

2. The Dow is NOT the market. Please get that fundamental fact straight. It is only 30 stocks! It is antiquated, outmoded.

It is only 30 stocks because in 1896 they only had pencil and paper to calculate it. The S&P 500 is a much better indicator.

For some reason we keep on having to say this.

Don't be a sheeple just because it is "one of the most commonly followed equity indices". Leaving the 19th century and joining the 21st century would be a good idea.

The DJIA is one of the oldest and most commonly followed equity indices. It is price-weighted, unlike other common indexes such as the Nasdaq Composite or S&P 500, which use market capitalization.[4][5] The DJIA also contains fewer stocks, which could exhibit higher risk; however, it could be less volatile when the market is rapidly rising or falling due to its components being well-established large-cap companies.[6]

The value of the index can also be calculated as the sum of the stock prices of the companies included in the index, divided by a factor, which is approximately 0.163 as of November 2024. The factor is changed whenever a constituent company undergoes a stock split so that the value of the index is unaffected by the stock split.

First calculated on May 26, 1896,[2] the index is the second-oldest among U.S. market indices, after the Dow Jones Transportation Average. It was created by Charles Dow, co-founder of both The Wall Street Journal and Dow Jones & Company, and named after him and his business associate, statistician Edward Jones.