By Mike Rowan, 11/13/2009
The Dow Jones Industrial Average
The Dow Jones Industrial Average is one of the best known United States Stock indices, and is generally seen as a barometer of the overall stock market. The DJIA is comprised of 30 stocks that represent the major market sectors, and are among the largest companies in the U.S. at any given time. The DOW 30 companies do not change often, and are widely considered to be “blue chip stocks” in their industries.History of the Dow Jones Industrial Average
The Dow Jones Industrial Average, or DOW 30, was founded by Charles Dow on May 26, 1896, and represented the average of 12 stocks from leading American market segments. Of the original 12 stocks in the Dow Jones Industrial Average only General Electric is currently part of that index. The other 11 were:- American Cotton Oil Company, a predecessor company to Bestfoods, now part of Unilever.
- American Sugar Company, became Domino Sugar in 1900, now Domino Foods, Inc.
- American Tobacco Company, broken up in a 1911 antitrust action.
- Chicago Gas Company, bought by Peoples Gas Light in 1897, now an operating subsidiary of Integrys Energy Group.
- Distilling & Cattle Feeding Company, now Millennium Chemicals, a division of LyondellBasell, now in Chapter 11 bankruptcy.
- Gas Company, still in operation as the Laclede Group, Inc., removed from the Dow Jones Industrial Average in 1899.
- National Lead Company, now NL Industries, removed from the Dow Jones Industrial Average in 1916.
- North American Company, an electric utility holding company, broken up by the U.S. Securities and Exchange Commission (SEC) in 1946.
- Tennessee Coal, Iron and Railroad Company in Birmingham, Alabama, bought by U.S. Steel in 1907.
- U.S. Leather Company, dissolved in 1952.
- United States Rubber Company, changed its name to Uniroyal in 1961, merged with private B.F. Goodrich in 1986, bought by Michelin in 1990.
The Current 30 Companies in the Dow Jones Industrial Average and when they were Added
