The Dow Jones index is the arithmetic average of the stock price index. In the US stock market, the Shanghai and Shenzhen 300 Index, equivalent to China A shares, represents the largest and most important stock market in the industry. With the development of financial market, more and more companies begin to go public, and there are more and more kinds of stocks. In the stock market, stocks go up and stocks go down all the time, so it is difficult to distinguish the stock market.

What does the Dow Jones index mean?

Therefore, we summarized the ups and downs of some representative stocks and converted them into stock market indexes, so as to objectively identify the trend of the stock market and bring reference information to investors. With the continuous development of Dow Jones index, the stock market index has been improved and gradually extended to the world. But today, stock indexes not only reflect the stock market situation, but also many investors invest in these indexes, which is the embryonic form of index funds. In this way, investors' investment is not limited to a certain stock, but can invest in the whole stock market or a certain industry.