How many common stocks are in the dow jones industrial average

The Dow Jones Industrial Average, or simply the Dow Jones, consists of 30 stocks representative of large U. The Dow Jones Company divides American industry into 10 sectors.

The industrial index includes nine of them, omitting only the utilities sector and the transportation components of other sectors. At publication, the five largest sectors make up more than 75 percent of the Dow Jones. Industrial stocks make up the largest sector of the DJIA, with a total of The industrials sector includes construction, construction materials, industrial goods and services, but it excludes transportation industries, such as railroads and trucking.

Dow Jones Industrial Average (DJIA) Definition & Example | Investing Answers

The top component of this sector is Caterpillar, Inc. The 3M Company comes second, at 5. Stocks in the index are weighted by price, and statistics are current as of February 29, , according to the Dow Jones website.

The second-largest sector of the Dow Jones, technology, represents This sector includes industries such as computer services, software and computer equipment. The top component in technology is IBM Corporation, with Hewlett Packard Company and Microsoft are also represented in this sector. The consumer services sector represents Retail, broadcasting, publishing and travel come under this umbrella.

McDonald's Corporation is the largest component, making up 5. The oil and gas sector makes up This classification includes energy producers, equipment, services and distribution and alternative energy. The largest component is Chevron, with 6. Consumer goods make up This sector includes auto manufacturers and distributors, food and beverage companies, residential constructors and makers of personal and household products. Companies from this sector include Coca-Cola and Proctor and Gamble, each with approximately 4 percent of the index value.

The selection committee chooses stocks based on investor interest, reputation and growth.

Because of the stock limit, the index does not necessarily include all possible industries within a sector. Four additional sectors make up approximately 25 percent of the Dow Jones.

DJIA - Dow Jones Industrial Average - CNNMoney

The financial sector includes banking, real estate, financial services and insurance. Representative companies include American Express and Bank of America. Health care consists of care providers, equipment, supplies and pharmaceuticals, as exemplified by Merck and Pfizer. Alcoa represents the final sector, basic materials, which includes mining, metals, chemicals and forestry. Sectors That Make Up the Dow Jones by Karen Farnen. More Articles Components of the Dow Jones Sectors of the Dow Stocks What Does It Mean When the Dow Falls?

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Industrials Industrial stocks make up the largest sector of the DJIA, with a total of Technology The second-largest sector of the Dow Jones, technology, represents Consumer Services The consumer services sector represents Oil and Gas The oil and gas sector makes up Consumer Goods Consumer goods make up Other Sectors Four additional sectors make up approximately 25 percent of the Dow Jones.

References 3 Dow Jones Company: Dow Jones Industrial Average Fact Sheet Dow Jones Company: Companies in the Dow Jones Industrial Average.

Resources 3 Dow Jones Company: Dow Jones Industrial Average Methodology Dow Jones Company: Sector Classification -- Methodology Dow Jones Company: Popular Articles What Does a Dow Jones Point Drop Mean? Common Stock Index Total Asset Turnover TAT Ratio Calculation What Is the Percentage of a Large and Small Cap in the Total Stock Index?

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