What is the difference between the DJ Industrial Average and the DJ Composite Index?
brodis36 asked:
I know the DJI is the major indicator of the market, but what is the point of the DJA? I can see it has more components on Yahoo Finance but… what is it used for? Other differences?
I know about the other indices. I guess my question is what does the DJ composite index represent?
I know the DJI is the major indicator of the market, but what is the point of the DJA? I can see it has more components on Yahoo Finance but… what is it used for? Other differences?
I know about the other indices. I guess my question is what does the DJ composite index represent?
There are a whole bunch of DJ averages. The DJIA is the “industrials”, but there is one for rails, for steels, for a lot of market segments. Dow’s original idea was that the industries led one another in time. Manufacturing would go up first, followed by transportation (getting the goods to market), and so on. A lot of importance was placed on which of the DJ averages was going up or down first.