On Thursday, the Dow Jones Industrial Average passed a significant milestone, the latest in a more than 100-year ascent that has included a constantly changing group of businesses.
On Thursday, the closely tracked average surpassed the 40,000 mark for the first time in history. However, the index looks very different today than it did a century ago, or even a few decades ago.
Charles Dow invented the average in 1896 with just 12 industrial stocks. When combined with the Dow Jones Transportation Average, the two were intended to provide a measure for the overall economy.
After eight stocks were added in 1916 and another ten in 1928, the Dow has remained at 30 for over a century.
Companies have been added and eliminated over history to reflect the country’s industrial presence. Consider technology, for instance.
The index currently includes seven equities from the sector, indicating its expanding importance in the equity market and corporate world.
Source (CNBC)
