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Dow Jones Industrial Average

The oldest US index: a narrow set of large companies weighted by share price rather than by capitalisation.

How to read the number

Price weighting is a rarity today — a company with an optically expensive share moves the index more than a larger company with a cheap one.

When the metric lies

Its narrow membership and weighting method make it drift from the broad market more than capitalisation indices do; as a gauge of the economy it lost that argument long ago.

Also known as: djia

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