Dow Jones industrial average is composed of how many blue chip stocks?
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A. B. C. D.B
The Dow Jones Industrial Average (DJIA), often referred to as the Dow Jones, is a stock market index that represents the performance of a selection of blue-chip stocks. It was created in 1896 by Charles Dow, one of the founders of Dow Jones & Company, and Edward Jones, a statistician. The purpose of the index is to provide a snapshot of the overall health and performance of the U.S. stock market.
Initially, the Dow Jones Industrial Average consisted of 12 blue-chip stocks from various sectors. The index was calculated by taking the average price of these 12 stocks and dividing it by a specific divisor. Over time, the index has undergone changes to adapt to market developments and maintain its relevance.
As of my knowledge cutoff in September 2021, the Dow Jones Industrial Average includes 30 blue-chip stocks. These stocks are considered to be leaders in their respective industries and are chosen to represent a broad cross-section of the U.S. economy. The selection of stocks is made by the editors of The Wall Street Journal, which is owned by Dow Jones & Company.
It's worth noting that the composition of the Dow Jones Industrial Average is periodically reviewed and adjusted to reflect changes in the market and the economy. Companies can be added or removed from the index based on their performance and their ability to represent the overall market trends accurately.
To summarize, as of my knowledge cutoff, the correct answer to the question "Dow Jones industrial average is composed of how many blue chip stocks?" is B. 30. However, please ensure to verify this information with the most recent sources or consult the latest materials provided by the ABA for the most accurate and up-to-date answer.