The Dow Jones is the oldest American market index in existence. It was created to track the development of an industry in the US stock markets.
American journalist Charles Henry Dow came up with this coefficient on May 26, 1896, while researching the movement of the market. That explains the word "Doe", but what about "Jones"? That was the name of Mr. Doe's business partner, and together they founded Dow Jones & Co. Journalists tracked market changes and published the results in the Wall Street Journal.
Interestingly, the Dow Jones index is called the blue-chip index. The term comes from casinos where blue chips have the highest denominations.
The index covers the 30 largest US companies. The prefix "industrial" is a tribute to history - currently, many of the companies included in the index do not belong to this sector. The index was originally calculated as the arithmetic mean of the stock prices of the companies covered.
At that time, the index was the arithmetic average of the stock prices of 12 American industrial companies, of which only General Electric is represented in today's version of the index.
The largest percentage drop in the index occurred on Black Monday 1987, when the Dow Jones lost 22.6%. On the first trading day after the September 11, 2001 attacks, the index lost 7.1%.