The Dow Jones Industrial Average is commonly shortened to “the Dow.”
The index was created by Charles Dow and Edward Jones, whose financial publishing partnership helped popularize market reporting. Its first version appeared in 1885 as the Dow Jones Railroad Average; the industrial average followed in 1896. Although the name still says “Industrial,” the index now contains 30 prominent U.S.-listed companies from a range of industries.
The Dow is price-weighted, meaning a company’s share price—not its total market value—determines its influence. A high-priced stock can therefore move the index more than a much larger company with a lower per-share price. This differs from the market-capitalization weighting used by the S&P 500.
“The Dow,” “Dow Jones,” and “DJIA” commonly refer to the same index in everyday financial coverage, although Dow Jones also names the broader financial-news and data company. The Dow is historically important, but its small number of constituents makes it less comprehensive than broader market indexes.