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Dow Companies
So everyday you see something in the news about how the Dow is performing for the day. For people who are not involved in the stock market it simply means nothing to them because they do not understand its importance.The 30 Dow companies give investors a quick way to determine how the markets are performing. This is because a majority of all stocks traded tend to follow the direction of the Dow stocks. Many investors like to focus completely on the Dow companies, because they tend to offer investors very stable stocks with long standing reputations. Therefore, the risk of owning these stocks tends to be lower than other stocks. The chart below displays the Dow 30 stocks and how they are performing currently. When the arrows are mostly green it means the Dow is performing well for the day, and when the arrows are mostly red the Dow is performing poorly.
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So everyday you see something in the news about how the Dow is performing for the day. For people who are not involved in the stock market it simply means nothing to them because they do not understand its importance.