DJA Trading and Investing
Description - Dow Jones Composite Average Index
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Dow Jones Composite Average:
Dow Jones Composite Average index (^DJA) tracks 65 publicly traded companies. DJA index is also known as DJCA and as DOW(65). The Dow composite index is a basket of stocks from the DJI (Dow Jones Industrials), DJT (Dow Jones Transportation) and DJU (Dow Jones Utilities).
The Dow indexes are maintained and reviewed by editors of The Wall Street Journal. The components selection is based on the company's reputation, company growth, interest of investors to the stocks and how accurately a company represents defined industrial sectors. Because the DOW indexes consist of the biggest publicly traded companies on the U.S stock market the changes in the index components are quite rare.
All DOW indexes including the Dow Jones Composite index are price weighted indexes and as a result the index price is affected only by the changes in the price of stocks from the index basket and is not affected by the number of outstanding shares.
About Dow Jones Industrials Average:
Even the Dow Jones Industrial Average (^DJI) is one of the most tracked by the investors indexes in the world. The DJI index is also known as DOW (30) and is one of the oldest indexes (was launched in 1986).
The Dow Industrials index covers biggest publicly traded companies and is considered an index that reflects the U.S. economy. As of 1999, 30 of DJI companies covered 28% of the U.S. stock market.
About Dow Jones Transportation Average:
The Dow Jones Transportation Average is one of the oldest stock market indexes in the world (introduced in 1884). This index is represented by 20 of the biggest publicly traded companies that cover the Transportation market sector. The DOW Transportation index also well known as DOW(20).
About Dow Jones Utilities Average:
The Dow Jones Utility (^DJU) is also known as DOW(15) which represents 15 of the biggest U.S companies in the Conventional Electricity, Multiutilities and Gas Distribution industries. The DJU is one of the latest DOW indexes and it was introduced in 1929.