Dow Jones Industrial Average Index (DJIA): The “Original 12” Companies
The Dow Jones Industrial Average Index, commonly referred to as the DJIA or simply the Dow, is one of the most widely recognized stock market indices in the world. It represents the performance of 30 large, publicly traded companies listed on stock exchanges in the United States.
But before the Dow became what it is today, it started with just 12 companies. These original 12 companies were selected by Charles Dow, the co-founder of Dow Jones & Company, when he created the index back in 1896.
The Original 12 Companies
- American Cotton Oil Company
- American Sugar Company
- American Tobacco Company
- Chicago Gas Company
- Distilling & Cattle Feeding Company
- General Electric
- Laclede Gas Light Company
- National Lead Company
- North American Company
- Tennessee Coal, Iron and Railroad Company
- U.S. Leather Company
- United States Rubber Company
These companies represented a diverse range of industries at the time, including oil, sugar, tobacco, gas, electricity, and more. They were considered the leading companies of the era and were chosen to provide a broad representation of the U.S. economy.
Over the years, the composition of the Dow has changed multiple times as companies have been added or removed. Today, the index includes well-known names such as Apple, Microsoft, Boeing, Coca-Cola, and Goldman Sachs.
Despite the evolution of the Dow, the original 12 companies hold a special place in its history. They laid the foundation for what would become one of the most influential stock market indices in the world.
Investors and analysts still closely monitor the performance of the Dow Jones Industrial Average Index as it continues to be a key indicator of the overall health and direction of the U.S. stock market. The index’s fluctuations can have a significant impact on investor sentiment and market trends.
In Conclusion
The DJIA, or Dow Jones Industrial Average Index, began with just 12 companies selected by Charles Dow in 1896. These original 12 companies represented various sectors of the economy and played a crucial role in shaping the index’s legacy. As the Dow has grown over time to include 30 companies, the “original 12” will always hold a special place in the history of this iconic index.
