What is the Dow Jones?
The oldest of the famous indexes: it follows 30 giant US companies.
🧺 What is an index?
An index is like a basket with tiny pieces of lots of companies. Instead of looking at them one by one, the index tells you with a single number whether they did well or badly all together. That's why it's measured in points, not in money.
📖 Its story
Charles Dow was a journalist who wanted an easy way to tell if companies were doing well. On May 26, 1896, he published an average of 12 industrial companies. It started at 40.94 points. In 1916 it grew to 20 companies, and in 1928 to 30, like today.
⚙️ How it works
At first the math was very simple: add up the stock prices of the 12 companies and divide by 12. Today it follows 30 very big companies from many industries, and the ones with the most expensive stock count more.
🤯 Fun fact
Of the 12 original companies from 1896, General Electric stayed in the index the longest: until 2018.
🎓 For older kids
The Dow Jones turned 130 in May 2026. It went from about 41 points to more than 50,000. That's why people say investing means thinking long term.
🧠 Did you get it?
How many companies did the Dow Jones start with in 1896?
🗂️ Quick facts
- Born: May 26, 1896
- Created by: Charles Dow, a journalist, with his partner Edward Jones
- Where: United States
- Has: 30 companies
🎮 Play with it
Build your basket on the Monitor and compare it with the index: did you beat the market?
Build my basketJust for learning: not an investment recommendation.