Dow Jones Industrial Average (DJIA)

The Dow Jones Industrial Average (DJIA) is a price-weighted index that tracks the performance of 30 large, publicly traded companies based in the United States. It is one of the oldest and most widely-followed stock market indices. The DJIA is calculated by taking the sum of the prices of the 30 stocks and dividing it by a divisor, the Dow Divisor.

The formula for calculating the DJIA is as follows:

DJIA = (Sum of Stock Prices/Dow Divisor) × (1/Number of Companies)

For example, if a company's stock price is $100 and the Dow Divisor is 10, the company's contribution to the DJIA would be $10.