The Dow Jones Industrial Average: The Market’s MeasureIn 1896, Charles H. Dow developed what is today known as the Dow Jones Industrial Average (DJIA). It was composed of 12 companies that were traded on the New York Stock Exchange. By watching this “average” of the prices of a dozen large and diverse stocks, investors were able to gauge how the entire market was doing.

The DJIA and its sister index, The Dow Jones Transportation Average, gave new credibility to the stock market. Dow’s inventions made investing more understandable and accessible to individuals who previously were unsure or untrusting of it.

Though it has changed greatly over the years—including expanding to 30 companies and using much more complex methods to calculate and deliver its values in real time — “The Dow” remains the world’s single most-quoted and most-watched index. It has truly become “the market’s measure” for investors around the globe.

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8776.39Close of DJIA 12/31/08

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Emergency rule imposed in Pakistan

9/11 Commission Report Published

George W. Bush re-elected

AIG, Pfizer and Verizon join The Dow

Tsunami kills 310,000 in Asia

Pope Benedict XVI elected

Terrorists bomb London

Hurricane Katrina slams Gulf Coast

New Fed chairman

"An Inconvenient Truth" released

Saddam Hussein sentenced to death by hanging

Democrats win control of both House and Senate

iPhone unveiled

War in Iraq

President Bush announces plans for Iraq troop surge

New Century Financial files for backruptcy

2008

Fidel Castroannounces resignation

Bear Stearnscollapses

Beijing Olympics

Federal takeover of Fannie Maeand Freddie Mac

Fed lends $85 billion to AIG

Earthquake in China kills 70,000

Lehman Brothers files for bankruptcy protection

Bush signs plan creating $700 billion TARP

Barack Obama elected President