Edward David Jones was born in 1856. Profession was a statistic. In 1882 he founded along with Charles Dow and Charles Bergstresser the Dow Jones Company. While Edward Jones developed the administrative tasks Charles Dow performed editorial work. Together they published what would later be called the Wall Street Journal, a journal specializing in the analysis of the stock exchange in New York. Its name comes from the street where the building still exists in the stock market.
Suppose for the moment that all the shares today are worth a dollar. If tomorrow some prices have risen and fallen further, but added together are worth $40 rate will have risen 10 points which means an increase of 33%. Usually the variations are not as pronounced or stock prices are so low, but it is an example to clarify the concept.
This simple calculation was later changed to a composite index, giving more weight to the shares of the largest companies in addition to dissolving the effect created by the companies whose shares have lower individual value. Thus, a company of the 30 which individual shares are sold at higher prices, by the fact that it has less splitting of shares, the change in its price in the market will have an effect on the index ranges greater than if one of whose shares are more divided. Hence, now it is known as the Dow Jones composite index.
Bank of America
Johnson & Johnson
JP Morgan Chase
Kraft Foods Inc.
Procter & Gamble
The Travelers Companies
United Technologies Corporation
Another popular indexes are the NASDAQ and the Standard and Poor 500, but that is another history