What Is the Dow Jones Industrial Index?

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The Dow Jones Industrial Index is an index of 30 American stocks, and it is a way of getting a glimpse at how the market is doing on a given day. Learn about why the Dow Jones only follows industrial companies with help from a registered financial consultant in this free video on investments and personal finance.

Part of the Video Series: Beginner Investing
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This is financial adviser Patrick Munro talking about what is the Dow Jones Industrial Index? The Dow Jones Index is a index of 30 American stocks. It's the first index that ever came out in the 1900s -- the early 1900s. The Dow Jones Index has changed in its formation over the years, but many of the companies are well-known American brands that have been around for at least that long as well. And like the name implies, it's all industrial-based companies. There's no technology in there, nothing exotic, no emerging markets -- anything of that nature. Every day, the Dow Jones Index appears and its fortunes are shown on television in a second-by-second roll-out of how the market is doing from the market hours of 9:30 in the morning to four o'clock in the afternoon Eastern Standard Time. So individuals will look and check their BlackBerrys, et cetera, for how the Dow is doing and that way they can see how the market is doing as well. This is Patrick Munro talking about the Dow Jones Index.

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