The world is taking a turn for the better with a lot of areas evolving into something greater. We are living the life of constant development, and it’s simply incredible. Think about all of the things that have changed over the years. Look at the stock markets; it’s something that a lot of investors are keeping track on. The stock market is an interesting topic to many; both investors and stock market influencers often keep track of what’s going on with stocks. In fact, a lot of investors, even the newer ones, are quite familiar with the Dow Jones Industrial Average. It’s something that all investors should take interest in.
Now, you may be asking yourself, what is the Dow Jones today? Essentially, the Dow Jones Industrial Average is also known as Dow which is a stock market index. Essentially, the index is based on 30 companies that are large and publicly traded when it comes to daily trading.
Ideally, the dow stock is the average of the 30 indexed companies based on their performances. There are a lot of terms that float around in the investing world like “dow today” or “dow stock.” Now, dow stock is a particular term that is constantly being used by investors as well as the world’s media. In a way, it works as an overview in regards to the health of the entire stock market. Most know this, but the Dow Jones Industrial Average happens to be the most well-known of the Dow Averages.
While that is indeed the case, it’s still the second largest compared to the Dow Jones Transportation Average. Investors know most of this already, but you may have a few questions of your own. It’s a part of history, but people still wonder about the industrial part of things. The “Dow” was mainly created with companies fulfilling the industrial sector.
Details on Dow Stocks That Are Tracked Today
As stated earlier, there are a total of thirty companies that actually qualify as a “Dow Stock” company. It’s an interesting process; new companies are added in replace of the older companies that removed. This is something that will happen over time, and one of the newest company additions is Walgreens Boots Alliance. Companies can be apart of the Dow stock index for centuries, just like General Electric (over 110 years). Right now, the oldest company that’s apart of these 30 companies is ExxonMobil. These companies become a part of a list that’s full of incredible companies.
Investing In And Trading Dow Stocks
When it comes to investing in any Dow stocks it’s actually not that hard to do. Essentially, there are three different ways for you to invest:
- Future Contracts
- Exchange-Traded Funds
- Options Contracts
Now. When it comes to trading Dow stock, things are a bit more on the tricky side. You aren’t actually able to buy Dow stocks, but there is another way. What you can do is buy ETFs (or mutual funds) that consist of portfolios which are mirror images of the performances of Dow stocks.
There are a lot of investors that understand the importance of knowing every element of the stock market. Even new investors have to understand these things because, in the end, it can help you make the choices that need to be made.
The Dow Jones Industrial Average will always play a huge role not just in history itself, but in the history of investing world too. There are a number of companies that have the chance to be a part of this list, just about anything are possible. Just know, that Dow Jones today will always be significant on many fronts.