The Dow Jones Industrial Average (DJIA) is a stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.
Imagine DJIA as a health monitor for big businesses. Just like how doctors use heart rate monitors to check your body's condition, investors use DJIA to check how these 30 large companies - which can be seen as representing America’s economic health - are doing.
Stock Market Index: A measurement of a portion of the stock market calculated from prices of selected stocks. The DJIA is one example.
Blue Chip Stocks: These are nationally recognized, well-established, and financially sound companies. The DJIA consists entirely of this type of stock.
Bull Market/Bear Market: These terms describe how stock markets are doing overall. A bull market is when prices are rising, while a bear market is when prices are falling.
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