Dow Jones Industrial Average
An index that measures the stock performance of 30 large companies
Real World Example
The Dow Jones Industrial Average (DJIA) is significant to the history of the Great Depression as it reflected the dramatic fall in stock prices that contributed to the economic crisis of 1929. During this period, the DJIA plummeted, signaling a loss of investor confidence and leading to widespread financial panic. This index was important because it helped people gauge the health of the economy, revealing the magnitude of the economic downturn. Today, the DJIA still matters as it provides insight into the stock market's performance, which can influence decisions on investments, retirement funds, and savings. For instance, if the DJIA drops significantly, it might impact people's confidence in the economy, leading them to save more and spend less, affecting businesses and jobs in your community.
